South Florida Condo Business

When the Saints Go Marchin....

2010-03-12T17:03:00.000-08:00

I have read in the news:

Africa Israel affiliate sells condo sites at big discount

Africa Israel Investments, one of the hardest-hit companies from South Florida’s real estate collapse, has unloaded two condominium development sites for a discount of about $17 miillion. AI Florida Holdings, an Africa Israel affiliate, sold the site of the proposed 288-condo project Soleil and an existing office building at 3050 Biscayne Blvd. in Miami for $8 million.

It also sold a property at 500 Alton Road in Miami Beach that was planned to be the site of a 66-condo tower called Vitri for $5 million. AI Florida paid a combined $29.6 million for the properties in 2004. The sales, first reported by CondoVultures.com, closed on Feb. 18. The buyers of both sites are affiliates of Miami developer Crescent Heights, according to state corporate records. Calls to AI Florida chief executive Richard Marin were not immediately returned.

Africa Israel, led by Israeli-Russian diamond billionaire Lev Leviev, has been unloading prime properties at steep discounts since late 2008. At that time, Africa Israel said it would sell off assets to cover $472 million in bonds maturing by the end of 2010. Since then, the company has sold 518,000 square feet of developable land for $52 million, or $100 per square foot, according to CondoVultures.com, a Bal Harbour real estate consulting firm. In the most expensive South Florida land sale of 2009, Africa Isael in September unloaded a 7-acre parcel in Miami’s Park West neighborhood to the developers of the proposed Miami Worldcenter for $39 million, less than half of the original $88.7 million contract price.

An affiliate of Africa-Israel also took a big loss last June in the sale of an office complex at 1101 Brickell Ave. in Miami. It sold the 488,449-square-foot tower for $33.2 million. Africa-Israel bought the property, which covers nearly 4 acres, for $70 million in 2005. “Despite being a very shrewd organization overall, Africa Israel came to town not understanding the Miami marketplace,” said Condo Vultures principal Peter Zalewski. “They overpaid for a bunch of different dirt, and in the end their timing was off. Now they’re paying the penalty for that.” The Soleil and Vitri sales also resulted in a more than 50 percent discount for 3050 Biscayne Properties and 500 Alton Road Ventures, both Crescent Heights affiliates. Crescent Heights president Russell Galbut and Crescent attorney Sharon Christenbury did not immediately return calls seeking comment. A 150,000-square-foot site, the Soleil property includes a 90,480-square-foot office building described by Zalewski as “antiquated” and “C-quality at best.”

The Vitri site, located near The 5th and Alton retail center, is more suited today for a hotel or small office development, he said. With the Soleil and Vitri acquisitions and late 2008 purchase of a 60,000-square-foot condo development site in the Brickell area, Crescent affiliates have made three bargain land acquisitions since the residential market tanked. The $9 million purchase of the Premiere Towers site near Brickell Avenue was less than the $13.57 million loan seller Willy Bermello got from Colonial Bank when he refinanced in July 2006.

The three purchases — particularly the Soleil and Vitril deals —indicate Crescent executives sense South Florida’s residential market has reached the bottom, Zalewski said. “As much as Africa Israel doesn’t understand the Miami market, the Crescent affiliates are the complete opposite,” he said. “Their people on the ground have knowledge, context and cash,” Zalewski said. “From what these people have accomplished previously, I’d bet my money on them being right” about the bottom.

Crescent historically has specialized in condo conversion projects, so buying undeveloped land could lead to the company’s selling the properties once pricing improves, Zalewski said. “Land banking makes sense — don’t underestimate the value of the approvals received to build both projects — but that doesn’t seem like their forte,” he said. “They might have a deal already cut [with another buyer] who didn’t have the direct access to Africa Israel. “[Crescent] always makes sure to have an exit strategy.”

March 04, 2010 - From Daily Business Review

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos,

When the saints go marching....

2010-03-12T16:59:00.000-08:00

I have read in the news:

Africa Israel affiliate sells condo sites at big discount

March 04, 2010 - From Daily Business Review

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos,

BRAVO

2009-09-25T15:33:00.000-07:00

BRAVO!

Read in the Sarasota Herald Tribune - September 23, 2009

Sarasota County opposes drilling

Sarasota County commissioners voted unanimously to make stopping a proposed offshore drilling bill a legislative priority in 2010. Pristine beaches should trump oil exploration, Sarasota County leaders said Tuesday in opposing any oil exploration in Florida waters. Oil drilling promises to be a major issue in the upcoming state legislative session. Top legislators -- most from inland counties -- are pushing a plan to allow oil exploration within 10 miles of the shore. The County Commission voted unanimously to make stopping the oil bill a legislative priority in 2010. Commissioners even changed the language of the resolution to remove any ambiguity. It now reads: "Do not pursue offshore drilling in Florida waters." "I would support that," said Commissioner Nora Patterson. "Pretty straight," added Commissioner Shannon Staub. Instead of oil, the county's legislative agenda calls on state leaders to support alternative energy options like solar energy and to "build a green economy through aggressive energy policies." The Legislature did not pass a major renewable energy bill proposed by Gov Charlie Crist last year. Crist's proposal -- known as a renewable portfolio standard -- would force power companies to generate a percentage of their electricity from renewable sources such as solar energy.

I agree. Leave our beaches alone. Our oceans and water are already enough polluted. And our agonizing coral reefs are desperately asking for a break.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos,

Do I believe in the Big Bailout?

2009-02-02T06:50:00.000-08:00

You have surely read about the billions (and possibly trillions) that our government keeps handing to failing banks, mortgage bankers, Fannie Mae and other GSE's.

The official explanation is that they "are too big to fail".

And, meanwhile, it's business as usual. Government "discovering" from time to time that CEO's and high-level executives are still pocketing bonuses and buying Lear Jets, while their troubled bank use the bailout money to buy out other more troubled financial companies and banks.

My opinion is that Federal Government should just let them fail, and take over their assets and liabilities, establish a Federal Trust fund, in the manner of the 1980's famous Resolution Trust, to market the thousands (or may be millions) of these properties, mortgages and securities.

It is a big tangle, for sure, and the Feds might not be completely up to the task. But it is surely a better solution than bailing out the predators while they continue to feast on the corpse of a broken economy, eventually giving them the power to recover and come back to haunt us with another bubble of a new kind and invention.

A Federal Trust would try to put some order in the massive amount of borrowers' failures, organize and streamline some restructuring of these loans, decide on eventual foreclosures, short sales, and perhaps even the renting of troubled properties to their present bankrupt owners, avoiding unnecessary foreclosures and evictions.

A few months ago, I wrote about an obnoxious case of aborted short sale. I couldn't understand the outcome, and I thought of stupidity, or fraud. I have read an article today that might clarify this case. It might not be fraud or stupidity. It might just be another case of greed.
Let me tell the story again:

I had sent an offer to a listing real estate broker, regarding a property that was offered at $ 239,000. My offer was $ 199,000. The broker indicated that the lending bank had previously refused much larger offers. The last one refused was $ 239,000. But that was months ago, and he thought that, in view of the continuous market deterioration, the bank would probably accept it. I so informed my customer and here started the long wait. After a few months of periodically contacting the listing broker who didn't manage to get a response from the Bank, one day something happened. I called the broker and he was very upset. He told me that the bank has canceled his listing, foreclosed on the property, put it up for sale with another broker, and sold it in a couple of days for $ 155,000, a lot less that what my client had offered. The broker was on the brink of crying in desperation and swore not to get involved in any more short sales.

You can imagine my indignation. That's how I started suspecting fraud or plain stupidity.
I even thought of writing to newspapers and agencies. I informed my Realtor association and they told me to write to my congressmen, which I did. There was, of course, no further news, and it was another buried case.

I am reading now in an article from The Bradenton Herald, on February 2nd, 2009, an article, written by a Florida West Coast attorney, that had enlightened me, or at least provoked some thoughts. Here it is:

Why the lender may not OK your short sale

By Cynthia Ridell

At Riddell Law Group, we focus on real estate matters primarily. Thus most of my time is spent negotiating workouts, shorts sales and defending foreclosures. In the course of my practice we have had many success stories. Many short sale transactions are being approved and closed these days in Sarasota and Manatee counties. In fact NAR (the National Association of Realtors) stated that “Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates.”

Much of these sales are short sales. But what about the short sale offers presented to lenders that do not get approved. Many of these offers are substantially more than what the lender may see a year from now when they receive a property back in foreclosure.

Thus when a short sale approval does not occur, the question posed by many borrowers, real estate agents and the like is: “Are the lenders just crazy?”

Well, it may not be the soundest fiscal response when a lender rejects a short sale offer at first glance. Or it may just be that the offer is an insufficient offer. But what about the offers that are substantial and can be corroborated through comparables? One must look further for the answer to this question; one must look to the Pooling and Servicing Agreement (PSA) that a particular loan is part of.

As many of us know, most mortgages were sold on the secondary market the “day after” closing and pooled with a group of mortgages held in trust as collateral for the issuance of a mortgage-backed security. Some mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae are known as “pools” themselves. These are the simplest form of mortgage-backed security. These assets were pooled together so that Wall Street could package them as Mortgage Backed Securities. Each of the pools of mortgages are governed by this pooling and servicing agreement.

Most of the agreements have provisions for when an asset goes into default. The servicier, must elect to identify the asset as non performing and place it into the foreclosure process. Once this is done the servicer is now entitled to receive two times its servicing fees. It also opens up a multimillion dollar escrow fund that the servicer can reach to for payment of foreclosure attorney fees upfront. This may very well be the reason that borrowers that attempt a workout via short sale or a deed in lieu of foreclosure never get anywhere but foreclosure.

Another reason that the short sale process for approval stagnates is because of competing interests and private mortgage insurance at the investor level. Many of the securities sold have different terms for different beneficial interests or Tranche as they are known. Some are high risk with possible great returns and others are low risk conservative returns.

Investopedia defines a certain type of Tranche by writing: “A special type of bond class in a sequential pay collateralized mortgage obligation. This class of bond does not receive any interest or principal payments until all other Tranches have been completely paid off. In a Z-tranche, the interest that is not paid is accrued and added to the principal for future interest calculation purposes.”

Moreover, many of the more senior beneficial interests, or Tranches, may have mortgage insurance to look to for payment in the event of foreclosure. Thus for them a workout seems a moot point if they can look to insurance to make them whole. Whereas the lesser beneficial interests may not be able to look to insurance but rather a pro rata share of the proceeds from a sale. Thus within the pool there is conflict among the beneficial interests as to how to proceed: workout or foreclosure?

Cynthia A. Riddell, an attorney whose practice primarily focuses on real estate foreclosure, short sale and bankruptcy issues. is a member of the Florida bar and admitted to practice in the U.S. District Court for the Middle District of Florida. She practices in Sarasota, Manatee, Pinellas and Lee counties.

This clarifies somehow my confusion and perplexity. There might be an explanation for my aborted short sale, other than fraud or stupidity. It's all too familar: GREED.

It also make me think that this mess will be absolutely impossible to untangle. Can you imagine the thousands of package loans sold to foreign or American investors, hedge funds, and banks, serviced by multiple affiliated or non affiliated businesses, swapped, fractured and resold ad nauseam? Can anything but a centralized organization try to unravel and disentangle this disaster? And can we qualify the late and present actions of the creators of this catastrophe, other than plain cold- blooded GREED?

Henry B. Nathan is a Florida Real Estate Professional. Please visit my website: http://www.condo-southflorida.com to search for

Florida Condos, Hallandale Condos, Aventura Condos, Hollywood Condos, Sunny Isles Condos

Your tax money and Wackenhut

2008-11-13T07:00:00.000-08:00

Can this affect our property taxes? Of course!

In many previous posts, I have advocated for a scrutiny of our local governments.

Our property taxes have not decreased substantially, and have even increased sometimes, in spite of the crashing reductions of real estate values.

Our cities and counties tenaciously oppose every move in the sense of controlling their budgets. Property values go down? They raise their “millage” (tax percentage applied on the property value to determine the actual tax.) Tax reduction mandates? No problem, they start charging for previously free services, or increase their present fees.

If they were half as diligent in spending our money, as they are charging us, perhaps we could avoid these excesses.

I read this in the South Florida Business Journal – Nov. 11, 2008:

Wackenhut billings come under scrutiny in Broward

Broward County auditors are raising red flags over how county agencies kept tabs on nearly $6 million in billings by Wackenhut Corp. for security services last year.

In a report to be presented to county commissioners on Wednesday, county auditors noted several problems with the way Wackenhut invoices have been processed.

Specifically, the report noted that county personnel were not reviewing and validating daily entries on security logs that document hours worked by guards. The audit also found that there was no evidence that hours billed were hours actually worked.

County Auditor Evan A. Lukic said the decision to review the county’s oversight of Wackenhut grew out of news reports earlier this year that alleged the Palm Beach Gardens-based security company was overbilling Miami-Dade County for services that were not performed.

“We were concerned about the allegations we heard and whether we were possibly experiencing the same thing here,” he said. “We wanted to look at it from how are we controlling the contract and administering it.”

At this point in the auditing process, Lukic said, there was no evidence Wackenhut engaged in any wrongdoing. However, based on the audit’s findings Lukic said his department will take a closer look at payments to “make sure that guards who we are paying for are present.”

In June 2005, Broward County entered into a three-year agreement with Wackenhut to provide security services. Payments for fiscal years 2005, 2006 and 2007 totaled more than $14.8 million.

In fiscal 2007, Broward County’s Aviation Department topped the list with $2.1 million in security services billings by Wackenhut. The county’s facilities maintenance division paid out $1.66 million to Wackenhut, and the county’s library division was billed nearly $633,000.

The report found that during a one-week period, the libraries division paid 233 hours of overtime for security guards and found no evidence that Wackenhut provided the required written notification and payroll documentation to substantiate the overtime payments.

When queried by the South Florida Business Journal about the auditor's findings, Wackenhut issued the following statement: "We've worked closely with facilities management through the audit department to insure compliance and to improve our processes."

Questions also have been raised about matching guard qualifications to pay rates. In some instances, the audit raised concerns about guards with lesser qualifications billing at a higher rate, resulting in overcharges.

In an Aug. 22 letter, Broward’s director of the facilities maintenance division advised Wackenhut President Drew Levine that he would now require the company to provide documentation that links guards’ qualifications with their job classifications.

In the meantime, Lukic is asking the Broward County Commission to direct the county administrator to come up with procedures to ensure that billings are validated, that the guards’ qualifications match their job descriptions and that overtime charges are substantiated.

In May, a Miami-Dade County audit found that Wackenhut overbilled the county by as much as $6 million over three years for services it did not provide to Miami-Dade Transit, and then falsified records to cover up the over charges.

In its response to that audit, which Wackenhut published on its Web site, the company said it has cooperated with the county’s investigation, but “continues to question the audit methodology.”

Wackenhut said a lawsuit by a former guard, who accused the company of padding its bills, has caused the increased scrutiny.

“It is Wackenhut’s belief that county entities … have been placed under undue pressure and influence by unsubstantiated allegations in this ongoing disputed litigation,” it stated.

Miami-Dade continues to review Wackenhut’s response to determine what actions should be taken, county spokeswoman Suzy Trutie said.

***********

My opinion:

Wackenhut has the audacity of "questioning" the “audit methodology”. Am I understanding this? Of course not. Am I agreeing to this? Of course not. Do I believe the hypocritical “findings” of the Miami-Dade and Broward County authorities three years after the facts? No way. Now that the money has been spent, they "discover" that the services they paid for were not even provided. And we are talking millions of dollars. What about all these people we are paying to take care of our money? Good question.

By the way, how many millions will this Marlins stadium cost the tax payer? Was it 800 million, 700, 900, a billion? God knows. And we will know in a few years, after the bills are paid and we find again ourselves in a big hole. But don’t worry, they will find a way of raising money to cover it all. Your money. And my money too; subsidizing a business, which market value will increase exponentially after they get their free stadium.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.Visit my website: http://www.condo-southflorida.com/where you can search for Aventura Condos , Florida Condos,

Books and Readings

2008-11-03T10:17:00.000-08:00

At the dawn of a new presidential term, and with no intentions of venting out my political preferences, I find it important to spread around interesting ideas which can help explain what has gone wrong in our country and our economy and what new directions are being suggested to rebuild our nation’s wealth and success and regain our position as world leaders.

A provocative book that have drawn my attention is:

The Predator State:

How Conservatives Abandoned the Free Market and Why Liberals Should Too.

By James K. Galbraith.

Without endorsing its contents ( I am far from being an economist) I found some answers to the agonizing questions of how to save capitalism and a free society after the cataclysmic events that threatens to throw us back to depression-like poverty and hardship.

Here is a synopsis of The Predator State:

The cult of the free market has dominated economic policy-talk since the Reagan revolution of nearly thirty years ago. Tax cuts and small government, monetarism, balanced budgets, deregulation, and free trade are the core elements of this dogma, a dogma so successful that even many liberals accept it. But a funny thing happened on the bridge to the twenty-first century. While liberals continue to bow before the free-market altar, conservatives in the style of George W. Bush have abandoned it altogether. That is why principled conservatives -- the Reagan true believers -- long ago abandoned Bush.

Enter James K. Galbraith, the iconoclastic economist. In this riveting book, Galbraith first dissects the stale remains of Reaganism and shows how Bush and company had no choice except to dump them into the trash. He then explores the true nature of the Bush regime: a "corporate republic," bringing the methods and mentality of big business to public life; a coalition of lobbies, doing the bidding of clients in the oil, mining, military, pharmaceutical, agribusiness, insurance, and media industries; and a predator state, intent not on reducing government but rather on diverting public cash into private hands. In plain English, the Republican Party has been hijacked by political leaders who long since stopped caring if reality conformed to their message.

Galbraith follows with an impertinent question: if conservatives no longer take free markets seriously, why should liberals? Why keep liberal thought in the straitjacket of pay-as-you-go, of assigning inflation control to the Federal Reserve, of attempting to "make markets work"? Why not build a new economic policy based on what is really happening in this country?

The real economy is not a free-market economy. It is a complex combination of private and public institutions, including Social Security, Medicare and Medicaid, higher education, the housing finance system, and a vast federal research establishment. The real problems and challenges -- inequality, climate change, the infrastructure deficit, the subprime crisis, and the future of the dollar -- are problems that cannot be solved by incantations about the market. They will be solved only with planning, with standards and other policies that transcend and even transform markets.

A timely, provocative work whose message will endure beyond this election season, The Predator State will appeal to the broad audience of thoughtful Americans who wish to understand the forces at work in our economy and culture and who seek to live in a nation that is both prosperous and progressive.

Enter James K. Galbraith, the iconoclastic economist. In this riveting book, Galbraith first dissects the stale remains of Reaganism and shows how Bush and company had no choice except to dump them into the trash. He then explores the true nature of the Bush regime: a "corporate republic," bringing the methods and mentality of big business to public life; a coalition of lobbies, doing the bidding of clients in the oil, mining, military, pharmaceutical, agribusiness, insurance, and media industries; and a predator state, intent not on reducing government but rather on diverting public cash into private hands. In plain English, the Republican Party has been hijacked by political leaders who long since stopped caring if reality conformed to their message.

Galbraith follows with an impertinent question: if conservatives no longer take free markets seriously, why should liberals? Why keep liberal thought in the straitjacket of pay-as-you-go, of assigning inflation control to the Federal Reserve, of attempting to "make markets work"? Why not build a new economic policy based on what is really happening in this country?

The real economy is not a free-market economy. It is a complex combination of private and public institutions, including Social Security, Medicare and Medicaid, higher education, the housing finance system, and a vast federal research establishment. The real problems and challenges -- inequality, climate change, the infrastructure deficit, the subprime crisis, and the future of the dollar -- are problems that cannot be solved by incantations about the market. They will be solved only with planning, with standards and other policies that transcend and even transform markets.

A timely, provocative work whose message will endure beyond this election season, The Predator State will appeal to the broad audience of thoughtful Americans who wish to understand the forces at work in our economy and culture and who seek to live in a nation that is both prosperous and progressive.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com/
where you can search for Aventura Condos , Florida Condos
Hallandale Condos, Sunny Isles Condos

2008-09-06T16:44:00.000-07:00

The Beach Club II - Opportunity - Studio + Den + Ocean View

September 2, 2008

For those who are waiting in the sidelines for a good opportunity at the wonderful Beach Club complex, here is a great opportunity.

$348,000

36th Floor - at the Beach Club II.

Studio plus Den.

844 Sq. Ft. Living Area, plus 121 Sq Ft. balcony.

24 x 24 marble floors throughout.

Stunning ocean views.

Beautifully appointed kitchen with top of the line appliances.

Luxurious bathrooms.

The main amenities of the Beach Club Complex are located at the Beach Club II. A 40,000 Sq. Ft. state of the art spa, with a professional quality fitness center. 810 feet of ocean frontage, with the lifestyle of a high-class resort.

Request a showing; steal this wonderful condo at the Beach Club.

Call me: Henry B. Nathan: (954) 296-6741

Henry B. Nathan is a realtor at: United Realty Group Inc.

Visit my website to review outstanding opportunities in South Florida Real Estate:

http://www.condo-southf l ori d a.com

Inflation and Real Estate in Florida

2008-06-01T08:53:00.000-07:00

A constant motto in my conversations with potential customers is that inflation is a key factor in Real Estate investment.
My personal feelings have always been that inflation indexes and calculation have historically been somehow skewed and distorted and that they don't accurately reflect the reality of our currency devaluation throughout the last two decades.
A quick trip to supermarkets and gas stations and a quick look at your property taxes, property insurance bills, the price a new home, will quickly put in doubt the touted 2% or 2,5% annual inflation rates included in official economic data.

All signs are that we are heading into a period of high inflation, fed by enormous hikes in oil and food prices.

Real estate is a unique, valuable and tangible asset, which is not always the case with stock market shares, bonds, and other paper investments. World's population is constantly growing; the amount of available land and available natural resources is not. Unlike a dollar in the bank, real estate actual value will not shrink with inflation. Real estate will always be needed for residence, commercial, farming and industrial use.

My opinion has always been that, if we follow certain criteria and reasonable principles when acquiring real estate, it will always be, on the long term, the best investment we've ever made. In Florida, this is especially true, since we are one of the fastest growing states in the US, and we are due for a continued migration from of baby boomers from Northern states, Latin Americans, and Europeans.
The very high inventory of condos and homes available will be eventually absorbed – and faster than most of us realize. After all, a couple of years of low construction would be enough.

That's what, sooner than most believe, real estate is due for a strong comeback. And you better not be too late!
Here is an article on the subject that I read in a Realtors' publication.
I do not agree 100%, but it has an interesting twist on the subject.

Inflation: Winners and Losers

by Lawrence Yun, Chief Economist, NAR Research

An article from Real Estate Insights, a Web based publication of the National Association of Realtors.

Inflation

Recent news on inflation is not good. In the first quarter of this year, the Consumer Price Index posted its highest level in years. A story in The Wall Street Journal last month carried the headline: "Inflation, Spanning Globe, is Set to Reach Decade High." We've all felt the effects in higher costs for food, energy, and other consumer goods.

Inflation is rather like a "stealth" tax: you have less purchasing power when it is high. However, if someone is paying higher prices, then someone on the other side must be receiving higher revenues. Many salary adjustments are based on the consumer price index, and entrepreneurs and businesses receive higher revenue. Mentally, though, people believe a rise in income is the reward for hard work, and feel the rise in consumer prices just eats into that hard-earned income. So, of course, inflation is awful.

But economists do not like inflation for other reasons. Large movements in prices distort price signals and lead to less efficient allocation of resources. Lower productivity growth holds back the country's economic potential and standard of living.

In the real estate sector, however, inflation produces distinct winners and losers. Let's take a look at both sides.

Homeowners Win

Rising inflation - other things being equal - raises people's income and their home prices. Usually, the increases would be nominal in terms of what you actually receive in paychecks and the listing price you would set to sell your home. Of course, we are not in normal times. Along with very high housing inventory, we have CPI inflation and income rising by 3 to 4 percent while home prices are falling in many local markets. But if inflation were to really get out of hand and rise by 10 percent, then the higher associated rise in income would help home prices recover in nominal terms - though not necessarily in real inflation adjusted terms.

Improving home prices from rising CPI inflation will in general protect homeowners' housing equity, and interestingly inflation can help reduce the mortgage burden. Fixed-rate mortgages are most prevalent in the marketplace. That means, the vast number of homeowners have fixed mortgage monthly payments. Higher income with fixed mortgage payments is a winning combination for homeowners.

Consider a typical U.S. homeowner in 1970 - when inflation was just picking up. She would have purchased a typical home for $23,000 (this is not a misprint). By 1980, the typical home price reached $62,200. Family income grew from $9,800 (also not a misprint) in 1970 to $21,000 by 1980.

So, while home prices and income grew, the monthly mortgage payment would have been fixed at $160 per month (assuming $23,000 mortgage at 7.5 percent interest rate). While the homeowner was undoubtedly angry about rising food , energy , and other prices back in the 1970s, she was not complaining about the mortgage payment.

Homebuyers Lose

As the homeowner was paying relatively low mortgage payments, banks and lenders must have been maddeningly frustrated. But what could the lenders do? Contracts are contracts and both parties agreed to the mortgage terms.

Not to be burned again, the lenders will rightly want to compensate for inflation before lending again. Mortgage rates - no surprise here - rose and rose. The average 30-year fixed mortgage rate rose from 7 percent in 1970 to 14 percent by 1980. It increased further, hitting a peak at 18.5 percent in October 1981. At such a rate, it would have taken 18 years to lower the principal balance by just 10 percent.

At such high interest rates, who would want to buy a home? Home sales, not surprisingly, fell big time. Home sales activity was essentially cut in half.

Yes, the current inflation rate is uncomfortable. But actually it is not very high. CPI has been rising at better than 4 percent over the past 12 months. That is well above the Fed's comfort zone of about 2.0 to 2.5 percent preferred inflation rate. The current economic weakness will likely help moderate inflation going forward. But the weak dollar, high commodity prices, and elevated gold prices all signal inflationary concerns. Once out of the box, inflation is hard to put back other than by sharply raising
interest rates purposely. That could cause a true economic recession, as happened in the early 1980s.

Fortunately, that is unlikely to occur. The Federal Reserve has already cut the Fed funds rate deeply. The 30-year mortgage rates have barely budged, however, given the lenders' concern over inflation. It is also quite possible for mortgage rates to rise even if the Fed cuts its Fed fund rate further and the lenders want to compensate for inflationary risk.

But I believe there are plenty of monetary stimuli already in the system to forestall any major concerns. As I have suggested before, what is really needed to lift the housing market is fiscal stimulus. The temporary homebuyer tax credit being debated in the House of Representative to purchase any homes (and not just foreclosed homes as is in the Senate proposal) is the appropriate medicine at this time - not only to the housing market, but for the broader economy. A housing recovery will help spur a true economic recovery. That will certainly help wash away any bad taste from our current inflation levels.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com/
where you can search for Aventura Condos , Florida Condos,

New Property Insurance Bill Approved

2008-05-29T16:13:00.000-07:00

May 29th, 2008

Florida Property Insurance Costs didn't "drop like a rock" but at least for some time, they are not going up.

Florida Legislature has done a decent job, and the same can be said of our Governor. I would say they did the best they could, unlike the shoddy treatment given to Florida property tax issue.
Governor Crist signed yesterday the new law, called "homeowners' bills of rights". He signaled that the important consumer protections contained in the bill would help to keep insurance costs affordable. Since his election in 2006, Gov. Charlie Crist has made insurance relief one of his main goals, as seen in his constant objections to insurance companies rate hikes, and his intents of lowering insurance prevailing costs to the consumer.

New insurance regulations were all approved by the governor, with the exception of one provision that would allow up to 250 million to be lent by Citizens Property Insurance to small insurers. Also approved was the extension of rate freeze for Citizens policies.Increased penalties will be set for insurance companies in violation of Florida regulations.

His veto on the $250 million proposed loans to small insurance companies is not essentially against the program itself, but against the state-backed Citizens Property Insurance having to finance it, while its own finances could be challenged in the case of a major hurricane in the near future.

The Florida Insurance Council, which backs the small insurers program, hopes that it will be expanded next year, because of its good success track.
Essentially the new bill contains:

- Extension of the regulators' authority to block insurance companies' rake hikes.
- Freeze on Citizen's rate till January 2010.
- Prohibition of using arbitration panels in case of conflicts between insurers and state insurance officials, related to rates. Most states disallow these panels. In Florida's case the panels were used to approve rates, after state regulators had rejected them. The insurance companies would provoke regulators' rejections, by unreasonable demands, only to have the panels be the decision-makers.
- Maximum fines for violation of insurance state laws are doubled.
- The state must approve the methods used for hurricane prediction, which are essential in establishing insurance rates.
- Insurance companies cannot drop a policy holder without giving them a 180 days notice.
- They also must pay undisputed claims within 90 days of agreeing on the amount of the payment. Consumers were complaining that they were pressured into accepting low loss estimates on their claims by the threat of being held for many months and even years if the refused. Consumers can now accept the payment of the undisputed part of the claim, while resolving the remaining parts and start doing repairs on their damaged home, and get some prompt relief.

In general, the bill was well received by state regulators and consumer advocates, giving back to the state its control over rate increases and consumer protection. Insurance companies executives had mixed feelings.

Citizens' customers should be especially cheery about the new law. However, Florida Association of Insurance and Financial Advisors claims that Citizen customers' rate freeze benefits would be paid by all Florida's residential property owners if we are hit by a major hurricane. In effect, major Citizen's deficits would have to be covered by the totality of Florida insured homeowners by rate increases in their policies, regardless of which is their insurer. Like every summer, we'll cross our fingers.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com/
where you can search for Aventura Condos , Florida Condos,

Senate discusses foreclosure assistance legislation

2008-05-20T14:32:00.000-07:00

May 20, 2008- Foreclosure legislation almost ready in the Senate.

Senators are informing that they are advancing in the bi-partisan task of structuring a program to avoid foreclosures and assist 500,000 distressed homeowners in refinancing their mortgages.

The discussions have not ended and nothing has been released yet. But the Legislature is trying to do something about the housing and foreclosures crisis, before it gets out of hand and pulls the whole country into a recession.

They announced that taxpayers would not be affected by the program. President Bush has threatened to veto a similar agreement voted by the House, which puts forward a different rescue plan.

Republican Senators are split on the agreement. Some have expressed their fear that, at the end, the program would be a bailout of investors, speculators, banks and lenders, at the expense of US taxpayers. The Senate plan is similar to the House bill already approved. Both are basically an expansion of FHA or government insurance on mortgages. Both require the lender or holder of the mortgage to accept a payment of 85% on the appraisal value of the property, as full payment. FHA (Federal Housing Administation) would use a 1.7 billion federal fund to boot the program.

In the Senate version, Fannie Mae and Freddie Mac, government created mortgage corporations, which stocks are publicly held, would capitalize a special fund for this purpose.

The proponents of the Senate program estimate that it will speed the downward correction of home prices, accelerate the bottoming of their values, and stabilize the market. At the same time it would prevent people from loosing their homes.

Another part of the proposed legislation would set up an oversight mechanism, to monitor Fannie Mae, FHA and Freddie Mac future financial health.

The House has not voiced opinion on the subject but a White House spokesman affirmed that it will look carefully at the plan, once it was approved by the Senate, with special consideration to FHA expansion not being footed by taxpayers and is done in a responsible and effective way.

Other points which are being considered are the tax credits proposed for first-time-home-buyers.

As long as we, the tax payers don't end up paying the bills and bailing out the big banks, hedge-funds, and Wall Street billionaires, I am OK.

I'll keep you posted.Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos,

My Spanish Real Estate Blog

2008-05-20T13:35:00.000-07:00

I have noticed that a good part of people who contact me for real estate business are hispanic.

I have thought that perhaps they would enjoy reading in their native language and that is the main reason for setting up a new BLOG en ESPAÑOL, with the same purpose as this one.

Some articles will be a translation of the original posts. A few will be directly written in Spanish.
In all cases I will try to be as Hispanic as I can be. Actually I lived a portion of my life in South America.

Most of my Spanish-Speaking clients are actually immigrants residing in South Florida, or South American residents with an interest in Florida real estate investments or vacation homes in Florida.

Click on the following link to get to my new SPANISH BLOG

http://condosouthflorida.wordpress.com

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos,

Marginal Growth in Florida Tourism - May 16, 2008

2008-05-16T08:57:00.001-07:00

Here is the news on Florida Tourism, and here are my comments.

I would say that 2% increase in tourists from overseas is negligible.
These are the big spenders, who heavily weigh on our hotels occupancy, high-end restaurants and entertainment business, and potential investment.
With a weak dollar that has doubled the Euro's value if we compare it to a few years ago, and a Canadian dollar that has revaluated more than 50%, we would think that Florida tourism would be booming. The released anemic figures say that it's nothing that we can brag about.

One explanation that comes to my mind is the growing reputation that the US, and especially Florida, have been nurturing for the past few years, as an unfriendly destination, with heavy-handed officers at immigration airport counters. I have got this impression from a couple of customers and from what I read sometimes in the news, there is some truth in it.
In all truth, most foreign visitors love Florida and its infinite possibilities. Adequate investments in tourism promotion have always yielded uncountable benefits. But they should be consistent and sufficient.

I believe that international buyers are a principal source of business for many realtors here. Tourism is always the first contact of a potential buyer with our beautiful state, and is often followed by an investment in real estate. Do we need to pamper them? You bet.

Do we need to actively promote tourism to Florida? No discussion.

Here is the text of the article published today in the Tampa Tribune

Despite Economy, State Tourism Rises 3.4%

By CATHERINE DOLINSKI - The Tampa Tribune - Published: May 16, 2008

TALLAHASSEE - Rising gas prices and a slumping economy did not dissuade visitors from traveling to Florida during the first three months of 2008, when the state's tourism numbers rose 3.4 percent.

The same growth remains to be seen, however, in spending by tourists, which came in below state projections for two of the same three months.

Gov. Charlie Crist held a news conference on Thursday to announce that 23.8 million people visited the state in January, February and March. That number includes rising tourism among international visitors - a 2 percent overall increase in overseas travelers, and 6.6 percent increase in Canadian visitors. Additionally, Florida residents made 1.2 million more in-state trips over those taken during the same period last year. The rise in in-state travel, attributed largely to high gas prices keeping people closer to home, represents a 10.5 percent increase.

Crist lauded the state's online and television marketing efforts for boosting the tourism numbers and, presumably, spending by tourists.

"To have that many more people visiting the Sunshine State - they're spending money, they're going out to dinner, they're visiting our tourist attractions, and that has to have a positive impact," he said.

So far, however, state sales tax collections have not kept pace with the rise in tourism.

According to the state Office of Economic and Demographic Research, tourism-related sales tax collections were down 2.9 percent, or $10.9 million, below state projections for January, and down 2.4 percent, or $8.3 million, below projections for February.

The news was better in March, when tourism-related sales tax yielded 1.5 percent or $5.4 million more than expected, though overall sales tax collections were down $47 million from monthly projections. Results are not yet available for April.

Those collections would be down further had the state not invested in attracting more tourists, said Winter Park Rep. Dean Cannon, who oversees the House council on transportation and economic development. To that end, he defended the Legislature's decision this spring to spend about $2 million more of the state's general revenue on Visit Florida, the state's tourism marketing arm, despite a shortage of funds overall.

"Tourism dollars are sort of like the carbohydrates of the Florida economy," Cannon said, while the state's investments in high-tech business are the "proteins."

"I think that it was important to do whatever we can to secure short-term economic boost that can be derived from tourism and visitors to Florida, while we let some of the more slower-growing but higher-dollar projects that we've been planting to mature a little bit," he said.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos,

Banks selling commercial mortgage backed securities

2008-05-09T16:41:00.000-07:00

Read in the news today - May 9, 2008

Investors are starting to buy up billions of dollars in mortgages that have been stuck on the books of banks, but that hasn’t yet freed up money for new mortgages.

In the past four weeks, banks have gone to market with four issues of commercial mortgage backed securities with a total balance of $4.9 billion, according to data provider Commercial Real Estate Direct.

That’s a big improvement from weeks earlier this year when there were no deals, but down from the same period last year, when the issuance totaled $78.7 billion.
Banks are offering the securities at discounts ranging from 5 percent to 20 percent, but those discounts are modest compared to what vulture investors got in the wake of the last major real-estate collapse in the early 1990s.

That’s because default rates on commercial real estate remain low by historical standards. And there’s a lot of cash available. Banks don’t have to take the low-ball offers.

Source: The Wall Street Journal, Lingling Wei and Jennifer S. Forsyth (05/09/2008)

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com/
where you can search for Aventura Condos , Florida Condos,

State of Florida appropriates $10 million from Condo Trust Fund

2008-05-08T09:33:00.000-07:00

May 8th, 2008

I read the following article in today's newspapers. What I understand is that the state of Florida is actually taking $ 10 million from a trust fund, which was constituted by money that each condo owner pays through his association, as well as contributions and fines paid by developers.

In my opinion, it doesn't matter if the $10 million taken from the fund are going to affect or not the fund's mission or have a "negative impact". It doesn't matter if the fund has too much money in reserve.

What matters is that money that basically belongs to condo owners and should be used for their protection, is diverted to another use that has nothing to do with the fund's purpose. Is that right?

By all means, condo owners will still have to disburse this money every year, even though there is no need for it because the fund has a surplus.

I am not an expert in state budgets and appropriations. But this matter sounds weird to me.

Text of the article:

BY JOE KOLLIN - South Florida Sun-Sentinel - May 8, 2008

Almost one-third of the money designated for programs to help educate condo owners and pay for enforcement of condo laws will be diverted for unrelated state expenses as a result of the current budget crunch.

The $66.2 billion state budget approved last week by the Legislature includes $10 million from the condo trust fund, according to Thomas Philpot, a spokesman for Gov. Charlie Crist.

The state created the trust fund so condo owners, not other taxpayers, would pay for condo services. Money comes from the $4 annual fee each unit owner pays the state via his and her association, or about $5.6 million a year based on 1.4 million units. Money also comes from fees charged developers when they build condos and fines paid by associations that violate condo laws.

The trust fund currently contains about $29 million, about $7 million of which is used for investigators and accountants to review complaints by owners, educational programs for owners and the condo ombudsman. The rest is held in reserve.

"The $10 million trust fund sweep will not have a negative impact" on state services to condos, according to Michael Cochran, director of the Division of Florida Land Sales, Condominiums & Mobile Homes, the agency that regulates condos.

In January, Crist had proposed taking $20 million from the fund to help pay for other state programs. Jan Bergemann, president of Deland-based Cyber Citizens for Justice, a volunteer organization that helps unit owners, called it wrong to have so much condo money in reserve. "There shouldn't be a surplus. The money should have been used for the purpose intended — protection of condo owners," he said.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos,

Protecting distressed homeowners

2008-05-02T08:38:00.000-07:00

Interesting article I read today in the Miami Herald.

State lawmakers passed a bill to protect delinquent borrowers from losing their homes and and money to fraudulent foreclosure rescue services.

The Miami Herald – By Monica Hatcher - May 2, 2008

Almost as soon as she found out her lender had filed foreclosure, Deneen Whitley began getting phone calls, letters and pamphlets from foreclosure rescue services offering to save her Cutler Bay home from the clutches of the bank.

Whitley has resisted the offers so far, mainly because she's heard of people losing their homes after using such services. The temptation lingers, though, as the foreclosure clock keeps ticking with no resolution in sight.

''I have thought about it,'' Whitley said.

In an effort to protect the growing number of homeowners in the same situation, the state Senate approved a foreclosure fraud bill Thursday, reining in the growing field of consultants and equity purchasers offering home-saver services to delinquent borrowers. Some have been accused of duping homeowners into signing over their property and then selling for profit or charging them stiff fees to get it back -- a scheme sometimes called equity stripping.

Sen. Mike Fasano, R-New Port Richey, one of the bill's sponsors, said the legislation would help bring transparency to the foreclosure rescue business. The bill passed the House earlier this session. Gov. Charlie Crist is expected to sign it.

The bill requires foreclosure rescue companies to provide disclosures in contracts, including the fact that a homeowner may be selling his or her property.

Homeowners also would get a day to consider a contract before signing it, as well as three days to back out of the agreement. The new requirements stem from homeowners' complaints of being rushed into signing contracts they didn't understand.

''When you have people who are desperate to save something of such value to them, you have scammers and con artists trying to take advantage of the situation,'' said Sandi Copes, a spokeswoman with Florida's attorney general's office.

The attorney general has received 1,800 complaints about mortgage and foreclosure fraud in recent years, and is investigating four companies, Copes said.

In a typical rescue scheme, an investor offers to pay up the delinquent amount on someone's loan. In return, the homeowner agrees to sign over a deed in a lease buy-back arrangement.

In some cases, foreclosure rescuers have been known to take out large second mortgages or home equity loans on the property, making it impossible for the homeowner to repurchase.

Before entering into a lease buy-back agreement, investors would have to demonstrate that the homeowner has a reasonable ability to repurchase the property.

In addition, foreclosure consultants, who often take money in exchange for help dealing with lenders, would be banned from accepting payment before promised services are performed.

Copes said the bill also enhances civil remedies for homeowners under the state's Unfair and Deceptive Trade Practices Act.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

New Rules for Homeowners and Condo Associations in Florida

2008-05-02T08:26:00.000-07:00

May 2nd, 2008,

Florida Legislature just approved legislation to rule condo and homeowners association boards.
Governor Crist is likely to sign on the new law.
This is the result of years of discussions, back and forth attempts to rein in the famous condo commandos and put a limit to the nasty disputes between residents and their own elected boards.
Some of the new rules are:
- Directors accused of misuse of association money must be suspended from their boards.
- Only licensed management companies can be retained by condo associations.
- Co-owners of a same unit cannot both serve on the board.
- Directors of homeowners associations must read their association rules within 30 days of sitting on the board.
- Some other specific subjects were addressed, as the flags sizes and specifications allowed for residents in communities, or the Jewish mezuzahs that are now allowed by law to be affixed to the door frame.

The new legislature does not pretend to cover all possible issues. But at least it is a good intent to limit the power of overzealous boards, improve practices and protect homeowners against directors' dishonesty and embezzlement.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

Not a really great job on Florida tax reform.

2008-05-01T15:53:00.000-07:00

The Taxation and Budget Reform Commission (TBRC) was established by constitutional amendment in 1988 and met for the first time in 1990. Changes adopted by voters in 1998 called for the TBRC to begin deliberations in 2007 and established future meetings to occur every 20 years thereafter.

The Commission examines the state budgetary process, revenue needs and expenditure processes of the state. Its members analyze Florida tax structure as well as governmental productivity and efficiency. They review policy as it relates to the ability of state and local governments to tax and adequately fund governmental operations.

On appointing 11 members of the commission in February 2007, Governor Charles Christ said: This commission is an important element of my goal to increase transparency and accountability in government, ' I am eager to review the findings which will undoubtedly provide a deeper understanding of our budget constraints and unveil opportunities to lower taxes for the people of our state.'

The commission consists of 29 members, 11 appointed by the Governor, seven appointed by the President of the Senate, seven appointed by the Speaker of the House and four non-voting ex officio members, all of whom are members of the Legislature. Members will begin meeting in early 2007 and must submit any proposed constitutional amendments by May 4, 2008.

Well, we finally know the result of their hard work. Thanks to them, voters will have to deal with seven ballot questions in November elections. Will this bring a solution to the tax and budget mayhem that is presently ruling our state's economy?

I doubt it.

Dominated by a majority unwilling to carry forward any significant reform, the commission drafted some new tax breaks to favor owners of marinas and conservation lands, as well as some tax incentives for energy efficiency and windstorm protection expenses.

But their most important decision was to propose a reduction of property taxes by about 25%. It would apply not only to homeowners but also to businesses, second homes and commercial buildings. It would also establish a 5 percent cap on yearly assessment increase for non-homestead properties – businesses, investment, and second homes. In January 2008, voters have already approved a 10% percent cap.

This reduction is accomplished by basically eliminating the schools part of property tax revenue. This is the good part. The bad part is that the lost revenue will have to be replaced by new taxes and/or increases of existing taxes to be decided by our state legislators. Most possibly, an additional 1% on sales tax, and new sales taxes on now exempt services. We are talking about a 9.5 billion dollars gap. The legislature must find a way to replace the schools revenue and cover the gap.

Our school system, perhaps the poorest and least efficient in the whole US is once again the weak link in the chain. It will be the legislators' task to compensate the schools' lost revenue with an increase in the sales tax, new sales taxes on services, or cutting on the government budget additionally to the cuts already made this year.

Of course, these 'budget cuts' invariably lead to reduction in social and educational programs.

Frankly, that is not that we expected from a commission that is supposed to bring together some of the best brains in Florida. Instead of spending their time on more creative solutions to rein in the local government excessive spending and implement a sensible and intelligent property tax reform, the commission spent much of their time deciding on matters that have nothing to do with tax reform.

They revived the school vouchers for students at failing public schools and approved a proposal to allow state and local governments to contribute public funds to churches and religious organizations. Does this have anything to do with budget reform and taxation?

By the way, both proposals have already been overturned in the past by the Florida Supreme Court, after being approved by the legislature.

Florida voters will have to untangle all these failing proposals on the November ballot. They will not bring relief to our suffering middle and lower classes.

The property tax reduction might encourage investment and second home purchases. However, it will be at the expense of Florida residents, and it has all the looks and sounds of another hot air balloon to convince us all Florida residents that our government has solved the crisis, lowered taxes, solved all our problems, while it looks more and more like the famous home insurance reduction promised by our governments, which ended up actually increasing many homeowners bills.

Changing money from one pocket to another have never solved financial problems. In this case, swapping property taxes to sales taxes will only load an additional burden on people who don't even own a home. The elusive American dream will just be a bit harder to achieve in Florida.

I had hoped at some point that, after the failure of our legislators to implement a solid and sensible reform, the Taxation and Budget Reform Commission was our last hope to get a reasonable proposal presented to voters in November 2008. It ended up in politics as usual.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

Sunny Isles Real Estate - Porto Bellagio Condos

2008-04-29T15:29:00.000-07:00

Porto Bellagio

On North Bay Road, a few steps from the beach, a coveted location in Sunny Isles, Porto Bellagio is a good option. Prices have dropped from the highs of 2005 and you can find here some very reasonably priced condominiums.

The Porto Bellagio complex offers 500 luxury residences with eight floorplans ranging in size from 573 to 1,353 sq. ft., with 1, 2 and 3 bedroom layouts.

A beautifully landscaped pool deck, a club room conference room and fitness center are some of the amenities offered.

Porto Bellagio Amenities:

Mediterranean courtyard with fountain
Fabulous sunsets across the bay
Pool & spa deck
Professional Business Center
Executive Conference Room
Convenience to Aventura & Bal Harbor shopping
Billiard/Media/Recreation Room

Full Circuit Fitness Salon
Stroll along the Intracoastal walkway
Convenient elevators
Gated entry
Exterior storage
Covered parking deck
24 hours gated access and security

The City of Sunny Isles Beach has gone through drastic changes in less than a decade. From a long strip of motels, built in the 50's, it is now home to some of the most luxurious high rise condos in the Miami area.
Almost overnight, million dollar oceanfront apartments, fashionable shops, cafes and restaurant have made Sunny Isles one of the most fashionable and coveted locations in South Florida.

Large condominiums, built in the 70's, such as Winston Towers, coexist with the new giant structures: Ocean I, Ocean II, Ocean III, Ocean IV, Acqualina, Trump Grande, the Trump Towers, Turnberry Ocean Colony, are just a few in the growing skyline.

During the last few years property values have greatly increased in Sunny Isles.
Sunny Isles Beach population is estimated at more than 15,000 people.

A plethora of ethnic stores - a result of the perpetual melting pot phenomenon - line the shopping centers along Collins Avenue. The blend of wealthy tourists, South American, European visitors and immigrants, and the traditional snowbirds configure an incredibly diversified population.

Throughout its recent transformation, Sunny Isles has maintained much of its original charm. The famous Rascal House is gone but the fishermen are still at the Newport Pier, and the beachwear stores, the nonchalant walk of beach attired youngsters along Collins Avenue, remind the residents that the spirit is the same.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

Pets victims of Florida Real Estate Foreclosures

2008-04-27T08:05:00.000-07:00

An article from Sun Sentinel caught my attention today:

By Diane C. Lade - South Florida Sun-Sentinel

April 27, 2008

A real estate agent, checking on a Boca Raton home in Foreclosure, discovered them in the backyard: two 7-year-old mixed-breed spaniels, deliberately left behind by the former owners. The family left a note, including the name of their pets' veterinarian.

"Our owners lost their home and had to move. They could not take us with them."

That's the sign hanging on Sami and Danni's kennel at the Tri-County Humane Society in Boca Raton. The staff hopes someone soon will adopt both dogs, sisters together since birth.

Pets are emerging as the hidden victims of the housing crisis in South Florida, which has one of the highest Foreclosure rates in the nation. Animal welfare organizations are bracing for a flood of requests and abandonments as the housing downturn continues to drag on. They are particularly concerned about older animals, whose more expensive veterinary care may be too much of a burden in a slow economy.

"When times are hard for people, they frequently are hard for pets as well," said Nancy Peterson, issues specialist with the Humane Society of the United States.

The Tri-County shelter is at capacity, with 350 animals. But five or six calls a day continue to come from people who are moving but can't take their dogs, and 40 more from pet owners wanting to surrender their cats.

The Peggy Adams Animal Rescue League in West Palm Beach, which takes in animals referred by Tri-County, has added a category to a database that tracks why people surrender their pets: Foreclosure.

Last month, four pet owners said Foreclosure was the reason they were giving up their animals; another 56 cited "moving" and 11 more said they were "unable to find housing" that allows pets.

"Some people treat their animals like they are an old TV set or a couch. They're moving on and they can't wait to get rid of them," said Executive Director Joan Carlson Radabaugh.

But for others, "it is really heartbreaking," Radabaugh added. "They have lived with their animals for years and they love them."

In some cases, homeowners facing Foreclosure panic when they can't find a rental property that allows pets. Others must move in with family members who don't have room for Fido or Fluffy.

"We are hoping, in the future, to identify people who are in crisis and find [their pets] foster homes on a short-term basis," Radabaugh said. "And we need to show landlords that there are ways they can permit pets responsibly."

Instead of leaving their pets, animal welfare advocates and veterinarians urge owners to try to find temporary homes for them with family or friends. If all else fails, surrendering them to a rescue group or county shelter gives the animals a chance of finding a new home. The worst option: abandonment.

Officials with South Florida animal welfare groups and county shelters say it is hard to determine the effects of Foreclosures, as owners don't have to give a reason when they bring in their pets. They suspect many who are losing their homes simply say they are moving.
But Broward County Animal Care and Regulation, like the league, is adding "Foreclosures" to its surrender database to help them determine the scope of the issue.

The number of animal abandonment calls to the county related to evictions rose last year to 267 calls, compared with 198 in 2006. The shelter also gets stray animals that may be Foreclosure victims, said Acting Director Beth Chavez.

Palm Beach County Animal Care and Control also saw an increase in the number of surrenders toward the end of last year, as the housing market worsened. There were 1,599 dogs and cats brought to the shelter by their owners from Oct. 1 through Dec. 31, 2007, compared with 1,406 animals during the same period the year before. But officials said they did not know how many animals were brought in because of Foreclosure.

The first reports of a Foreclosure pet crisis to reach the Humane Society of the United States came late last year out of California, which has the nation's highest Foreclosure rates. South Florida is close behind. According to the Realestat.com research firm, 1,700 Palm Beach County homeowners and 2,200 in Broward were at least 90 days behind on their mortgage payments in February and close to Foreclosure. That was double the number in February 2007.

The American Veterinary Medical Association became alarmed at reports of animals being found in vacant houses, near starvation or dead. In some cases, Foreclosure proceedings were delayed and the pets had been locked inside for days. The association, the nation's leading authority on companion animal health, issued a statement this month, asking homeowners not to leave their pets or drop them on their veterinarians' doorsteps.

"It really disturbed us that people are doing this. These people are abandoning their animals under extraordinary circumstances," said Dr. Kimberly May, the association's assistant director of professional and public affairs.

The Humane Society of the United States has announced a new "Foreclosure fund," seeded with $15,000. Local shelters can apply for grants of $500 to $2,000 toward programs helping financially strapped families keep their pets.

"Moving always has been a major reason why people surrender their pets," Peterson said.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

Changes in Florida Landlord-Tenant Law

2008-04-25T08:44:00.000-07:00

April 25, 2008

The Florida House could possibly approve today a change to the landlord-tenant law.

It would allow the landlord to charge a penalty of up to two months of rent as a "termination fee".

The present laws allow landlords to charge up to the "actual damages" if a tenant breaks his lease. The landlord can sue to collect the rent until he finds a new tenant.

Some legislators consider the new bill as "consumer-friendly" because it will give to tenant a guaranteed maximum penalty. Renters would have the option to accept or reject the two-month maximum penalty at the time of signing their contract.

The bill is likely to be approved in both chambers. Governor Crist has vetoed a similar proposal last year, but would possibly reconsider the veto since "a new language offers more protection to the renter", since the renter could choose whether or not to accept the early-termination fee at the time of the contract execution.

Some renters could benefit from the two-month penalty. If they are in a low-occupancy rental community, the landlord could continue to charge rent for a long time until he finds a new tenant.

In essence, when signing the lease, the tenant would have to decide in which direction he wants to go.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

New Development in Property Taxes - April 25, 2008

2008-04-25T07:51:00.000-07:00

New development on the property tax front.

It's on. On November 2008, we will vote on a ballot proposal to cut property taxes by about 25 percent. 60% of voters should have to vote yes to pass the amendment.

It would apply not only to homeowners but also to businesses, second homes and commercial buildings. The lost revenue should have to be replaced by new taxes and existing taxes raises to be decided by our state legislators. We are talking about 9.5 billion dollars.

It would also establish a 5 percent cap on yearly assessment increase for non-homestead properties – businesses, investment, and second homes. In January 2008, voters have already approved a 10% percent cap.

The Taxation and Budget Reform Commission voted 18-7 to confirm the plan which was approved last month, mandating a cut of school property taxes in about $ 9.5 billion by the year 2010.

The main opposition to the plan has come from business lobbying groups, like the Florida Retail Federation, who threatened with a lawsuit to block it, and some legislators who argued it would lead to a huge tax increase. In effect, the amendments actually mandate a tax increase. The president of Associated Industries of Florida which represents most Florida large companies, affirmed that there was a "99 percent certain there will be a legal challenge" to try to block it from the ballot, and that it was "the biggest scam since the Florida lottery, being sold as a decrease of taxes when, who knows what it'll be?"

The tax swap of the education spending recourses that must be replaced by the new sales tax raises will go up to $ 11 billion, since it includes a provision to increase by 7.5 percent the K-12 spending for the next two years. Other critics of the plan affirm that this is another case of irresponsible improvisation or "creativeness" that, under the cover of helping property owners, will ultimately overburden those who can't even afford to buy a home.

Under the proposed amendment, Florida legislators will have to replace the schools revenue with some combination of raising the sales tax by one percent, doing away with sales-tax exemptions given to many industries, cutting spending, or levying new taxes.

Add to this proposal, another one that the legislature is considering, about capping property taxes to 1.35% of assessed value, supported by Marco Rubio, the Republican House Speaker.

Enough to get you dizzy? Of course. As long as you ignore the main issue. Cutting taxes, raising taxes, swapping taxes, cutting services, raising services costs, there are so many different ways to ignore a fundamental principle which is right in your eye: "You can't spend more than what you can afford". Our cities, our counties, our local governments are us. If we cannot limit their spending, we will have to pay for it.

They are spending too much, compared to what their more conservative policies had been in the past. All the new construction that has been approved by all our cities under the motto: "increase the tax base", has brought a large additional revenue that should have been more than sufficient to offset any additional services that they could be giving us.

A reasonable increase of our taxes in the same proportion as inflation during the last decade would have added enough recourses to these revenues.

If we are living in an unrealistic world of dozen of unnecessary cities, administrations, public servants, government pensions, bureaucracy, and what more, the only remedy is to reconsider this whole equation and adjust it.

Our middle class is suffering. Our economy, nourished in part by snowbirds and tourists is suffering. Real estate is at its lowest point in decades.

One of the main factors is high property tax, as are the high costs of property insurance in Florida.

It is time to address these issues honestly and with a vision to the future; Playing with tax-swapping, tax capping, tax cutting, tax increasing, is a dangerous game and a cul-de-sac avenue. Addressing the problems with a more efficient, honest and conservative handling of our public spending is the one and only alternative.

As would be my alternative if I had to balance my personal home budget with a fixed salary. I would have the choice of going deep in debt, or maybe try to rob my neighbors and go to jail, or reduce my standard of living, or live in a smaller home, eat less or starve a bit, or find a second job at night, or cut on my leisure expenses, or whatever you can imagine. But would I be able to play with my budget the way our elected representatives are doing?

Of course not; Because, as you guessed, I would end up bankrupt, insolvent, broke, bust, you name it.

April 25, 2008

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

2008-04-18T10:43:00.000-07:00

By Stephanie Armour. USA TODAY

Home prices are sinking. Banks are seizing properties from owners who can't pay their mortgages. Yet for Amber Gilmore, the miserable housing market has never looked better.
After searching for a home for more than a year, Gilmore and her fiancé found one in foreclosure. Once the bank cut the asking price by more than $100,000, the first-time home buyers eagerly sealed the deal for $230,000.

In about a month, the couple will move into the two-bedroom house in Chicago with a small fenced yard and garage. The previous owners invested in gleaming granite countertops and hardwood floors. Their loss, Gilmore says, is her gain.

"This is the best time to buy — so many homes are in foreclosure," says Gilmore, 25, a news coordinator for Telemundo, a Spanish-language media company. "The market right now is, to us, a benefit."

As home sales and prices drop across much of the USA, many potential buyers remain scared to jump into the market, and sellers are resorting to slash-and-burn prices. The national median price sank to $195,900 in February, down from $213,500 in February 2007. Foreclosures are up nearly 60% from March 2007, according to RealtyTrac.

But to a small but growing number of buyers across the nation, the grim housing recession offers a tantalizing upside: They can get a home at a fire-sale price. In some metro areas, price declines are galvanizing bargain hunters — especially first-timers, foreign investors and out-of-state buyers looking to rent properties they hope to sell later for a windfall.

Those shoppers are forming isolated pockets of real estate activity, especially in cities where foreclosure rates are high but jobs remain available to attract potential home buyers.

In some areas, such as Charlotte and Detroit, home sales are ticking upward, following a trend of upward sales as far back as 2006. In other markets, bargain-hunting activity is still too sporadic to fuel an overall rise in sales. Few economists expect the sporadic purchases to signal a bottom to the housing market's slump, but the bottom-fishing for home deals is a hopeful sign amid all the bad news about the troubled housing market.

National housing analysts say they lack hard numbers to quantify the degree to which investors and other bottom-fishers are affecting sales in many markets. However, "We've heard anecdotally that there are some investors looking to pick up these properties," says Paul Bishop, the National Association of Realtors' managing director of research. "That helps put a floor in some of these markets. Some real estate agents are trying to cash in by buying or renting buses and treating prospective buyers to tours — complete with free meals — of foreclosed homes in Las Vegas, Cleveland, Orlando and some parts of Michigan and California. In Auburn, Calif., potential buyers are ferried to bank-owned homes in style — via a 40-foot stretch limousine.

"There are people looking for deals, and the deals are out there," says Patrick Lashinsky, CEO of ZipRealty. "People aren't priced out of the market anymore. Two years ago, there was a stigma to buying foreclosed homes. Buyers felt like they were taking advantage of someone's bad luck. That's not there anymore."

'I'd almost call it a frenzy'

Ruth Ahlbrand, a Realtor in Las Vegas, began noticing new opportunities in the housing market last year, as banks that had seized homes began lowering the prices. In a market where casino projects promise plenty of job opportunities, she knew buyers could be found.

So she hatched a plan. Ahlbrand began training her agents to specialize in foreclosures, revamped her Internet marketing campaign to appeal to buyers intent on finding screaming deals and bought a 40-seat bus, which she spruced up with reclining seats and air-conditioning vents for each rider. On Feb. 13, Ahlbrand put into service her foreclosure bus — a red, white and blue coach splashed with slogans such as "Hottest Bank Owned Homes!" to take potential buyers on three-hour tours. The tours include free meals after the ride and an agent with a microphone to point out the deals and explain how to buy a home in foreclosure. So far, Ahlbrand says, more than 700 riders have taken the tour, and prospective buyers frequently drop in to see when the next tour is.

On weekdays, the bus rides up and down Las Vegas Boulevard, without passengers, to drum up more business. Sales have increased more than 10% since she began using the bus.

"It's like a seminar on wheels," Ahlbrand says. "Buyers are saving up to 30% or 50%. People are really looking for a deal. I'd almost call it a frenzy. We've hit the bottom, and Las Vegas is growing."
In one sign of the trend, she says, more than 40% of the homes her agency sold in December and January were bank-owned at the time of purchase.

And Las Vegas is one metro area where prices are dive-bombing. After prices soared during the national real estate boom of 2005, the city has absorbed one of the sharpest drops in home prices in the USA, according to a price-index report from S&P/Case-Shiller.
Las Vegas reported a 19.3% decline in home prices in January, compared with January 2007. And the median home price sank from $314,950 in March of 2006 to $243,169 in March 2008, according to the Greater Las Vegas Association of Realtors.

While overall home sales are showing their steepest declines in more than a decade, the allure of low prices to bargain-hunters offers a glint of light in an otherwise bleak real estate landscape.

Boston, Cleveland, Detroit, Sacramento and San Diego have all seen sales increases recently after a period of price declines, according to a March report by Radar Logic, a real estate data and analytics firm. In Detroit, sales of homes and condos rose 12.8% in February compared with a year ago, according to Realcomp. That doesn't necessarily mean prices are rising, too: In January, Boston still posted a 3.4% price decline over last year, according to the S&P/Case-Shiller index.

Joel Naroff, chief economist with Naroff Economic Advisors, says bargain buyers are moving in but some may be getting into deals in which they are expecting too much bang for their investment. Among the bargain shoppers:

- Investors. Single-family home prices in 10 major metro areas tumbled 11.4% in January, the steepest decline since such figures were first collected in 1987, according to a March report by the S&P/Case-Shiller composite index.

One result: mouth-watering opportunities for some investors, some of whom are buying multiple properties with plans to rent them out until the housing market picks up and prices rise again.

Alison Diboll, a marketing executive in San Francisco, closed a deal in March on the first of four homes she's buying in Charlotte and Dallas. She bought the homes, which were previously in foreclosure and have been rehabilitated, for about $100,000 each.
She plans to rent them out for five to seven years and sell them once the market rebounds.

Diboll is so confident that her four homes are a shrewd buy that she hasn't bothered to see any of them and is having them managed by a third party.
That sort of breezy approach toward buying a home without having seen it firsthand conjures up memories of the risk-taking by buyers during the real estate bubble. But Diboll insists her investment is safer than it would be in the stock market.

"With the stock market as volatile as it is, it's not a good idea for me," Diboll says.

"Real estate is the great American Dream," she adds. "I read that the people who made money during the Great Depression were those who had money and took a risk."

•Foreign buyers. International investors also are eyeing the U.S. housing market. Thirty-three percent of international buyers from April 2006 through April 2007 were from Europe, according to a 2007 report by the NAR.

Buyers from Asia and North America (outside the USA) were also active, accounting for 24% and 23% of international clients during that same time period.

Sales to international buyers have been turbocharged by the steady drop in the value of the U.S. dollar relative to other currencies. Lawrence Yun, chief economist with the NAR, says the dollar's dwindling value means that foreign buyers can get U.S. real estate at a relative average discount of 30%. (That percentage can run lower or higher depending on the buyer's home country.

Agents are trying to reach out to some of these far-flung buyers, many of whom are seeking vacation homes. Ralph Haverkate, a broker at Tarbell Realtors in Palm Springs, Calif., is dangling an unusual inducement: Buyers from Canada are reimbursed for their travel and hotel expenses — up to $1,750 — if they close on a home. The home doesn't even have to be one that his agency is selling, but they do have to use his firm as their representative. The agency is now offering the same sort of deal for European buyers, initially targeting Switzerland, Germany and the Netherlands.

"We've had buyers flying in back-to-back," Haverkate says. "My partner and I literally have three or four couples a week coming in, and we take care of them. Prices are low, and if you combine that with the currency exchange, the savings are really big. The market is suffering — but for them, it's good."

Economists say the international interest is a hopeful sign in today's market.

•First-time home buyers. First-time home buyers who found themselves priced out of the real estate market during the frenzied market of 2001 to 2005 are among those who are now tentatively starting to buy properties in some areas where prices have plunged.

In November 2007, about 39% of purchasers were first-time home buyers, up from 36% in 2006, according to the NAR.

Buyers who find a price they can afford still face other obstacles in the current economic climate, says Patrick Newport, an economist with Global Insight.

"It's still hard to get credit," he says. "Banks are being careful and requiring bigger down payments. But there are people jumping into the market, including investors, who are hoping to make a killing."

And buying a home through foreclosure or an auction can be problematic, with properties often sold "as is," or with potential buyers unable to arrange for a full inspection.

Financing needs to be secure, because homes bought at an auction often require closing within 30 days. And some buyers intent on snatching up low-priced bargains they plan to sell quickly could end up being burned if the housing market remains stuck in the doldrums for years to come.

Meanwhile, foreclosure tours — some in double-decker buses or swanky limos — represent part of a trend that analysts say could help prop up the real estate market in some areas.

"If you have any interest in real estate at all, you can't ignore the hype about foreclosures," says Nikki Holmes, a Realtor at Keller Williams Realty in Auburn, Calif., who has begun conducting Saturday-morning tours in a white stretch limo to showcase foreclosed homes to prospective buyers. "Buyers are getting very savvy and educated," Holmes says.

"People are saying, 'It's a really sad story we have this huge mortgage bust, but it's an opportunity for me.' When something fails, something else comes along to take its place, and that will re-energize the economy."

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

They voted: No Caps on Government Spending.

2008-04-15T12:41:00.000-07:00

April 15, 2008

On April 14, 2008 the Florida Tax Commission voted against a proposal to establish caps on government spending, or impose a "super-majority" vote when levying new taxes.

The presence of angry home and business owners, worried about their soaring property taxes, failed to curb the resistance. Their insistence, during hours of discussion and testimonies, to rein in the free spending of counties and cities, or to require a majority of two thirds vote for tax raises, had no effect and the resolution will not make it into the next November ballot. Both propositions were defeated in the Tax and Budget Reform Commission by a 14-9 vote.

There is another citizen-led "cut-property-taxes-now", which is trying to put on the 2010 a constitutional amendment which would cap property taxes at 1,35% per year on any property's assessment. The Legislature is also considering placing a similar proposal on November 2008 ballot.

In a bit cryptic statement by Jim Scott, a former state Senate president and Broward County commissioner, the proposals that failed to rally enough support on the commission Monday were a "one-size-fits-all solution unworkable in South Florida". He added:

"To say this commission is going to determine what people spend ... they didn't give consideration to areas like Broward and Palm Beach counties, which have to deal with a large number of immigrants". Scott, is the vice chairman of the commission.

Another puzzling affirmation by former state Senator Les Miller from Tampa:

"No one here knows what is in this," former state Sen. Les Miller of Tampa said. "I was taught, when in doubt, vote no."

Opponents and supporters of the tax ceiling were allowed by the commission to testify Monday. Against the proposal were the AARP and the Florida School Boards Association. Supporters: the Florida Association of Realtors and Dory Kilburn, a resident of Crown Colony in Ocean Ridge, who represented the Boynton Intracoastal Group, a coalition of condos, home to many retirees.

Kilburn, a Canadian snowbird said: "You know how they say snowbirds are wealthy? Well, most of them live in small one-bedroom condos or mobile homes. They came to Florida decades ago, when it was affordable. Well, it's not affordable anymore."

Some of the opposing votes on the commission were based in the fact that the commission has already agreed to put a proposal on November's ballot. If approved, it would eliminate the property tax that now funds public schools and mandate the Legislature to come up with replacement funds while capping increases in the assessment of all non-homesteaded properties at 5 percent a year.

That proposal, which must be approved by 60 percent of Floridians voting to become law, calls for the Legislature to adopt up to 1% increase in the state sales tax along as well as other measures, such as spending cutbacks and the elimination of some service sales tax exemptions. Some commissioners considered that the revenue-cap measure debated Monday would require the Legislature to meet the two-thirds vote threshold to offset the loss of school property taxes, and that could be a difficult task which could jeopardize schools budgets.

If the school property tax is eliminated, the state will lose more than $9 billion in public school funds. The 1% increase in the sales tax will raise about $3.9 billion, and the Legislature would be challenged to find a way to raise the $5.1 billion balance.

Legislators asked the commission to suggest them how to get these $5.1 billion, and the Senate Finance and Tax Committee has scheduled a public hearing on the issue Friday.

With all due respect: as we suspected they would, the powerful tax commission has addressed the problem by trying to swap property taxes with sales taxes. But the real subject which is: "why should local governments be allowed to adjust taxes to their fit their budget?", instead of adjusting their budgets to fit reasonable taxes" has once again been ignored.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

ARE WE FOOLING OURSELVES ?

2008-04-05T07:01:00.000-07:00

How many times do I hear the same questions? How long it's going to take? What is my forecast on Florida real estate?

I deal every day with different types of buyers: the investor, the vacation home buyer, the first-time home buyer, the luxury home buyer, the curious, you name it.

They will all have different approaches. For example:

Ideally, the investor would like to rent and cover totally or a significant part of his monthly mortgage costs, his insurance, maintenance or condo fees, and his taxes.

The vacation home buyer wants to keep his monthly payments under control, because by definition he is looking to have fun with his purchase, and not to create himself a new source of headaches. He adds the mortgage payments, the condo fees (because they are usually interested by condos), and the property taxes. And he will compare that to renting a good hotel room or suite for a couple of weeks or even a month.

The "empty nesters", which are in retirement age, and trying to downgrade to a smaller place, once their kids are gone, are a special case. They have been helped by the "portability" feature now added to their 'save our homes' protection. Typically they will pay less property tax if they move. However, many of them have lived in homes where they can somehow control their maintenance expenses. Moving to a condominium building means monthly charges as a lump sum, plus eventual "assessments" charges for repairs or upgrades to their condo building. These "condo fees" have sustained a relentless inflation during the last decade.

The first- time home buyer makes his calculations and unless he and/or his wife hold really great jobs, they could quickly find out that, after paying the mortgage, the insurance or condo fees, the property taxes, a purchase is simply out of the question. Renting is a much better deal.

Let's play with some figures.

You graduated five years ago from a good college; you hold a decent job. You are married, with a child, and your spouse is employed and brings some money to the table. Between both, you are making around $ 5,500 a month and that means that, after tax, you net about $4,600.

You have grown in a middle class family and are used to a certain level of comfort. But you have made your mind and your first home is just going to be a crowded two-bedroom condo. What's available in a decent neighborhood, (and I am not talking great luxury or new buildings on the beach) will cost you around $ 280,000. You were lucky enough to land a mortgage loan with only 3% down, and your savings allowed you to pay all the closing costs, and that's fine.

When you calculate your total home related monthly payments, you reach a figure of $ 2,500 per month. That doesn't include your electricity, phone, cellulars, and other utilities. Let's calculate all these in about $220. You won't have TV cable or internet at home. You can't afford it and after all, TV is not good for the kid, and you have enough internet exposure at work.

On the other hand, even though you have a health insurance plan, subsidized by your employer, you might have to fork out your part of about $250 or $300 a month. From time to time, you must pay a $10 charge to see a doctor, or something called "deductible", and even these expensive medicines for your kid's sore-throat infections; but we won't count that.

You also need two cars, because you both work, and these cars need insurance, tires, and other goodies. You have been reasonable, nothing fancy, but you still have to pay the monthly installments on both. So let's say that this would mean an additional $ 600 or $700 for both cars, all included. - except, of course, the gas. I was about to forget that! And at three dollar +, even for two small cars, it will mean another $150? $200? Ok. Say it's only $ 150. And you will change the oil and do minor mechanics yourself, and run on flat tires, not to overwhelm the budget. By the way, we forgot the college loans that, after all these years, you settled up to pay at about $200 a month.

We're already passing the $ 4,000 mark and we're just starting the month. You haven't eaten any food, you haven't bought any clothes or shoes; you haven't thought about vacations, restaurants, movies, continuing education, children birthday parties, or anything that can bring a little fun to your life, you haven't bought any furniture, gadget, nothing…And you haven't even put aside a penny.

While watching the shaky image of your antenna-powered TV, your spouse is ironing your shirt and the dress that you will wear at work tomorrow , trying to ignore the screams of the dear child who has spent all day in your mom's house –you can't afford private pre-school- and while cooking dinner, you are thinking that it's already the 20^th of the month and in 10 days you will get a new batch of bills and invoices in the mail.

Should you have thought twice before buying this condo, instead of renting for around $1000 or 1200? You bet.

Now, how many young couples I know, are making more money than our friend? How many do you know who have a lower income?

The fact is that real estate is not only an investment. It's not a share bought in the stock market. It's not an IRA account, an annuity or a bond. It happens to be an essential part of the day by day life of our population. And, during the so called real estate boom years, there has been a greedy, unreasonable and unbearable raise in home prices which has not at all been matched by salary raises or income increases.

Remember before the last stock market crash in the year 2000, how new technology companies which had never earned a penny, saw their shares selling at incredibly high prices? The madness went on until eventually everything went back to normal and people went back to common sense. (or did they?). Can we compare that to what's happening with real estate? Why not?

Isn't it what we are seeing now? With the difference that so many homeowners who bought at high prices are stuck with high mortgages and can't even sell their little piece of heaven?

And the other half who refinanced and cashed out for a few years to maintain their lifestyle, only to found themselves with a negative equity?

Our local governments, our cities and counties have aggravated the problem by unrestricted spending, and while they affirm that they are seeking ways of easing the property tax burden without affecting anybody (which is of course impossible), home insurance premiums have skyrocketed, and no big relief is in the horizon, no change. Except for home prices. Because hardly anybody can buy them any more. Now you ask me when these prices are going to go up again; when people will start buying homes again, when we will be back to normal. Do you think I can perform magic?

Now let's take the vacation home case. There was a time when Florida was a place you bought a nice condo for sixty or a hundred thousand dollars. You paid some maintenance fees and taxes at a total of around two or three hundred dollars a month and you were all set. Today, you buy a two fifty or three hundred thousand little condo, you're stuck with assessments and condo fees of five hundred a month, then the taxman comes and it's another five thousand dollar bill to pay, and it just doesn't make so much sense. You will just look somewhere else or just forget about the idea.

Last but not least, our investor studied the case of the $200,000 dollar condo he was looking at, and pondered if the thousand dollars a month he would gross in the best case, if all things ran smooth and he had a great tenant, would be a suitable return when he must pay $1800 per month between mortgage, maintenance, taxes and assessments.

Pessimistic? I wouldn't be doing this real estate job if I didn't have some hope. Now if our legislators could mandate some hope in the people who buy, it would definitely help.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos , Florida Condos, Sunny Isles Condos.

New Miami Condo Conversion - The Ellington

2008-04-01T07:39:00.000-07:00

New Condo Conversion in Miami - Affordable Housing.

Oversized one and two bedroom condos from $ 109,000 to $ 190,000

The Ellington

Treat yourself to a great lifestyle. Open the door to one of the residences and you’ll be astonished by the airy and spacious interiors that characterize The Ellington. With different floor plans to choose from, you can have not only what you need, but exactly what you want.

Oversized units with huge master bedrooms, closets, and sweeping views are just the beginning. The Ellington is also home to a state of the art gym, Olympic style pool, children’s playground, tennis courts, and an enjoyable barbecue area.

In the center of the vibrant city life and between both Broward and Miami-Dade, offers amazing shopping venues, and proximity to major highways and beaches.

Near Dade/Broward County Line

Community Features:

Clubhouse
State-of-the-Art Fitness Center
Olympic Style Pool
Spacious Sundeck
24 hr Secured Gated Community

Storage
Covered Parking Garage
Lighted Tennis Courts
BBQ & Gazebo Area
Business Center
Sauna

Interior Features:

1 & 2 Bedroom Oversized Floorplans
Split Floor Plans
Oversized Closets
Screened Terraces
Large eat-in Kitchen
Water Views
Upgrade Package Available

Ask me about this great new development:

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

The Related Group ordered to make condo refund

2008-03-26T08:05:00.001-07:00

The multiple lawsuits filed by buyers unwilling to complete their pre-construction contracts with developers is a notorious aspect of the ongoing real estate state-wide problems.

This article was in today's Miami Herald:

The Related Group ordered to make condo refunds

The New York attorney general directed The Related Group to cancel
contracts and return deposits to some buyers solicited in the Empire
State.

Posted on Wed, Mar. 26, 2008
BY PATRICK DANNER

New York's attorney general's office has asked Miami developer The
Related Group to cancel contracts and return money to New Yorkers who
bought condo units in two of its South Florida projects.

The Related Group broke New York state law by failing to register
units at Miami's 50 Biscayne and Bal Harbour's Harbour House before
marketing them to buyers in New York, the attorney general's office
found.

Related appears prepared to fight the finding, however.

''We categorically expect [the attorney general] to conclude that we
have not violated New York state'' law, said Betsy L. McCoy, Related's
general counsel, in an e-mailed statement. The company is
investigating the issue, and providing documents as required, the
statement said.

The letter from the New York attorney general's office didn't spell
out what would happen if Related doesn't fulfill its request.

It's unlikely the New York decision will have any impact on residents
of Florida or other states who bought condos in South Florida and who
are now trying to get out of those deals.

There could, however, be fallout for other developers in South Florida
who pitched their projects to prospective purchasers in New York but
failed to register through offering statements with the state.

''This decision could potentially impact New York purchasers of South
Florida condominiums well beyond these two projects,'' said Eric
Neuman, a Boca Raton lawyer who represents preconstruction condo
purchasers in lawsuits against developers.

Miami lawyer Robert Cooper, who represents about three dozen buyers in
New York and New Jersey who have sued Related over contracts at 50
Biscayne and Harbour House, expects the attorney general's decision
will further worsen problems in the Miami condo market.

''It means more units on the market and will add downward price
pressure in an already bad market,'' Cooper said. People ``looking to
sell are going to get hurt worse.''

Related didn't disclose how many units in the two projects were sold
to New Yorkers, but Cooper estimated it's between 5 percent and 10
percent. He said his clients put down deposits ranging from $100,000
to $250,000 at Harbour House and $60,000 to $100,000 at 50 Biscayne.

Cooper said his clients were elated with response of the attorney
general's office.

''They fully expect The Related Group will comply with the New York
attorney general's request that they receive their deposits back,'' he
said.

Condominiums -- regardless of where they are located -- that are
marketed in New York are considered real estate securities that must
be registered with the attorney general's office.

The purpose of the law is to ensure developers provide all disclosures
so prospective purchasers can make an informed decision, said Richard
Epstein, a Fort Lauderdale lawyer who represents condo developers.

In two letters dated March 19, Lewis Polishook, chief enforcement
officer for New York's real estate finance bureau, part of the
attorney general's office, informed Related the state has received
numerous complaints from buyers in 50 Biscayne and Harbour House.

''Making a public offering without submitting an offering plan and
having that plan accepted for filing is unlawful,'' Polishook wrote to
Related. ``Please allow the [buyers] to rescind and return all monies
they have paid to you.''

Polishook didn't return calls and a spokesman for New York Attorney
General Andrew Cuomo declined to comment.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Comments on Tax Reform Proposal - March 23-2008

2008-03-23T11:07:00.000-07:00

Transcription of an interesting article from the Sun Sentinel

Beware the fine print on latest property tax proposal

The Sun Sentinel - By: Michael Mayo - March 23, 2008

By now, you've probably heard about the proposed constitutional amendment to swap state-mandated school property tax with a penny sales tax increase and a repeal of certain sales-tax exemptions.

Sounds palatable, especially for those who bought houses in recent years and whose property tax bills could drop about 25 percent.

But before you go rushing off to vote for the plan, hatched and approved at lightning speed last week by the Taxation and Budget Reform Commission, consider the parts you probably haven't heard about:

- School districts would still be able to collect property taxes for construction, renovations, repair, debt repayment and other expenses. Local schools could still collect up to $5 for every $1,000 in taxable value.

- Part of our tax savings would end up going to the federal government. Property tax is deductible on federal income returns, but the deduction for state sales tax has expired. Lower property taxes would mean a smaller deduction and a higher income tax bill for those who itemize.

- The proposed amendment would put a 5 percent cap on the annual assessment increase for non-homesteaded properties. That would be good news for businesses, landlords and snowbirds. But the new cap, which comes close to the 3 percent Save Our Homes cap for homesteaded properties, could mean higher property taxes for everyone.

Here's how a March 11 commission staff analysis of the plan put it: "The cap on the annual growth of assessments of non-homestead properties may reduce local government revenues and/or lead to an increase in millage (property tax) rates on all properties."

That doesn't sound good.

Neither does this, also from the staff analysis: ' This measure will shift funding for a substantial portion of the public education system to state revenue sources. This measure will likely reduce state government spending on services and items other than education due to possible budget reductions.'

In other words, this proposal might be another shell game.

It would need 60 percent voter approval in November to pass. As with the January property tax amendment, which increased the homestead exemption and allowed full-time residents to transfer tax breaks when they move, local governments can subvert the intent by raising tax rates.

This plan guarantees an annual $9.3 billion to local school districts, same as under the current system. But there's fuzzy math as to whether a sales tax increase and revamped exemptions would be enough to reach the figure. If there's resistance to a services tax (on things such as lawyers and barbers), there could be a big shortfall.

That would mean cuts to other parts of the state budget, which could mean local governments would pick up the slack by increasing their portion of property tax bills.
Here's a real-life example of how a tax bill (mine) might look if this amendment passes. My 2007 property tax bill was $2,936. The state-mandated school portion was $657.

The new plan would drop my bill to $2,279, including $387 in school district taxes that would remain. But the district could conceivably raise that to $680. And my property tax savings could be negated by increases in sales tax and income tax.

House Speaker Marco Rubio likes the plan, because it spreads the tax burden away from property owners.

"Up to 20 percent of sales tax revenue comes from tourists," he told me Friday.

But this year's state budget shortfall shows the volatile and unpredictable nature of sales tax revenue, which is overly susceptible to downturns in the economy and tourism.

Rubio said that in down years, government would have to spend less. Florida already ranks near the bottom of per-student spending nationally.

The sales-tax exemption revamp is a long overdue idea, but given the sketchy guidelines and power of lobbyists you wonder if the Legislature has the will to carry it through.

Michael Mayo can be reached at mmayo@sun-sentinel.com

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On the same note, my comments:

Of all the valuable information that has been above transcribed, my conclusion, is one more time, that you don't get richer or accomplish any savings by swapping money from one pocket to another.

The new tax reform proposed by the Taxation and Budget Reform Commission is one more attempt to do exactly that. At the end of the day, as it has usually been the sad reality, the burden of the charges will fall on the back of the people who can afford it the least.

We cannot reduce our schools budget. We should not reduce our existing social programs to assist low income, seniors, handicapped and sick citizens.

Our local governments have provoked the malaise of our property tax inflation. They are the only ones who can solve it. They have to trim their budgets to the point where we, the inhabitants of these cities and counties, can afford to pay for these budgets.

If we cannot afford to have magnificent city halls crowded with myriads of bureaucrats, and non-essential services, let's get rid of them. If we have too many overlapping services, police departments, water departments, cities zoning departments, firefighter services, let's consolidate them, merge them, or any other solution that makes them more efficient.

No city and no county should have the privilege of increasing their budgets more than the official rate of inflation, unless expressly authorized by the majority of voters.

That's the bottom line. And these are the principles that we have been taught to apply in our household budgets. You can't spend more than what you earn, because sooner or later you will be in trouble.

Reducing the assessments value of our homes can be easily circumvented by our local governments, increasing their millage rates. Reducing property taxes by increasing sales taxes could possibly overburden those who can least afford it – those who can't afford to buy a home.

Keeping things the way they are will continue the trend that is hurting Florida's economy. Discourage out-of-town buyers and investors, accelerating the present trend of our working population to migrate to other states, lower our middle-class living standards.

Why not deal with the reality and do what has to be done? Our local governments have experienced an unusual bonanza by multiplying construction and developments. Those hundreds of new towers and high rises has widened their tax base and should suffice to meet all their needs. Why insist on taxing us on inflated and unrealistic property values? A real rollback to a sound economy is the only answer.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

New Tax Reform Proposal - March 17, 2008

2008-03-19T14:55:00.000-07:00

The Taxation and Budget Reform Commission has approved a proposed amendment on March 17, 2008. It would go on the November 2008 ballot.

Basically, it would reduce property taxes by 25% in 2011, eliminating the $9.6 billion that school districts must collect in order to qualify for state aid. This reduction would benefit resident and non resident owners as well.

The loss of revenue would be substituted by a 1 percent additional sales tax and/or levying sales tax on products and services that are not presently taxed, as well as a package of spending cuts.

Raising 1% the present sales tax would yield a maximum of $ 3.9 billion. How will a new sales taxes on some services be implemented, has not been determined. However the proposal excludes levying a sales tax on the presently exempted food, medicine, health care and electricity. The general opinion is that new taxes on services such as legal and real estate work, dry cleaning, pet care, and similar, would probably have to apply.

Against the proposition is the Associated Industries of Florida, a business lobbying group.

Since the proposal mandates keeping school funding at the current levels, lawmakers would have no choice except to trim the state budget to offset the loss of property tax revenue.

Some of the possible targets:

- Reducing state-covered health coverage to thousands of low-income children and pregnant women

- Eliminating a Medicaid program for 125,000 seniors and disabled residents, or reducing nursing home and hospital payments,

- Axing the state's medically-needed program which helps thousands of transplant and gravely ill patients.

Of course this has raised serious objections. The general opinion is that a heavier sales tax disproportionately hits the poor.

Now let's analyze this remedy as opposed to previous attempts.

Everybody seems to have forgotten the general sentiment that cities and counties, which have been unduly favored by the unusual raise in property values, as well as thousands of new homes built since 2000, should adjust their budgets. Nobody is mentioning raising this anymore. We just try to reduce the property tax burden by reducing state services to the needy, and hitting the common citizen with heavier sales taxes. That is the bottom line.

Do I agree with the new proposal? As a realtor, I should be happy, since it might somehow reignite the business by attracting out of state real estate buyers and investors, due to lower property taxes. As a citizen, I might have an issue.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Letter to Florida Legislators

2008-03-18T06:14:00.000-07:00

This is the text of a letter that I emailed to Florida senators Martinez and Nelson, and Representative Wasserman-Schultz, at the suggestion of the National Association of Realtors.

The issue is that the increased loan limits for FHA that were included in the Economic Stimulus package are set to expire at the end of the year. NAR supports an FHA Reform Bill that includes realistic and permanent increases in the loan limits.

Subject: Permanent Loan Limit Increase Key to FHA Reform Bill

As a constituent and a REALTOR®, I want to stress how important it is for FHA reform legislation to be quickly enacted. These bills, passed the House and Senate in 2007, are now stalled in conference. Permanent increases in the FHA loan limits, lowered FHA downpayment requirements, and new opportunities for condominium purchases are needed to create safe and affordable mortgage options for our state's homebuyers and those wishing to refinance. These changes will also provide much needed stability to our local housing markets and economies.

The new loan limits passed in the recently enacted Economic Stimulus bill will expire in less than 10 months. Dramatically reducing these limits at year's end will push our nation's fragile housing markets into turmoil once again. Realistic loan limits that permanently help ALL areas of the country are needed to bring stability to the marketplace.

FHA's down payment levels led many borrowers to opt for the exotic, risky mortgages that have been the hallmark of the foreclosure crisis. The FHA reform bills will allow FHA to modify down payment requirements and offer flexible financing to eligible borrowers.

In many areas of the country, condominiums remain the most affordable option for homeownership, but FHA owner/occupancy and documentation requirements, make it very difficult to purchase a condominium using FHA mortgage insurance. The FHA reform bills will move condominium financing programs into FHA's single-family program where they belong and ease the way for condominium purchases.

We cannot wait any further for FHA reform. Pass a permanent FHA reform bill NOW to give American homebuyers and homeowners the peace of mind they so desperately need.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Good News for Florida Tourism

2008-03-04T19:39:00.000-08:00

Good News about Florida Tourism.

According to the latest information, we are almost at the same pre 9/11 levels. With all the problems that Florida's economy is facing, the year 2007 has been a high point for both Broward and Dade tourism activity.

3% gain in overnight visitors, a good increase in international tourism, five and a half million in Dade only; this important source of revenue for South Florida continues to grow: Twelve million total overnight visitors in Dade, 10.7 million in Broward.

Hotels have seen their revenue soar in 2007, compared to a rather weak 2006. Hurricane season has been benign since 2005 and that has helped.

A surge of summer overseas travelers can be credited with much of the increase. That will be the future of tourism growth here. The US dollar weakness is the number one factor.

Canadians are increasingly flocking to South Florida in the winter, as are European planning to do in the summer season. International arrivals at Fort Lauderdale International airport were up 20% in 2007.

The hassles and tougher requirements for tourist visas, have been mentioned as a negative factor that keeps hurting this industry. It is claimed to reduce tourist affluence by at least 10%.

Florida continues to be an important magnet of world travelers, and we can only forecast a continuous and steady growth.

Its influence on the real estate business is obvious. During the last twenty years, we have immensely improved our appeal to world tourism and we keep offering the best in entertainment, beaches, outdoor activities, shopping, nightlife and, of course, lots of sunshine.

There are many destinations for Florida visitors: South Beach, Aventura, and Dade County as well as Fort Lauderdale, Palm Beach County, and the whole South Florida area, down to the Florida Keys. Orlando and its surroundings, the East Coast, Naples, Tampa, Sarasota, and the West Coast, Panama City, and the Panhandle, they all have their special flavor and the immense variety of alternatives offered is what makes our state so special.

Diving in the Atlantic Ocean, or at a deep cavern in a North Florida spring, canoeing in pristine rivers, deep sea fishing for marlin and sail fish, camping and exploring our state forests, partying on Ocean Drive or Lincoln Road in South Beach, watching a sunset in Key West, boating on the Intracoastal Waterways, spending an afternoon at a football or basketball game, or the Florida Grand Opera, horse races, casinos, or just enjoying the balmy weather, and our amazing blend of ethnicities, Florida is worth a visit, definitely.

I am a Florida Realtor.

For your search of Florida Condos, Miami Beach Condos, Aventura Condos, please call me at (954) 296-6741

Condominium black lists

2008-02-13T09:43:00.000-08:00

A couple of weeks ago, I had put my hand on a list from Bank United, where they were "blacklisting" many condominium buildings in South Florida, mostly in the area of downtown Miami and Brickell Avenue.

This is one more issue that real estate owners have to tackle today.

Finding a buyer is difficult enough. Finding a cash buyer for a unit at one of these buildings, is way harder.

Loans to foreign nationals are being made but at a much higher interest rate, and with larger down payments and this has discouraged many such buyers.

This new issue is complicating ever more the situation in areas already hit by foreclosures, high interest mortgages, and buyers' backing out of their contracts.

The problem is spreading, as I found out today in an article published in the

Daily Business Review:

February 13, 2008 By: Polyana da Costa

Beatriz Bustos has been trying to sell her Brickell condo for about a year.She has found a few prospects and has gotten close to sealing a deal several times but all the potential buyers ran into the same obstacle — they couldn't get financing.

"No one qualifies for financing," said Bustos, who is facing foreclosure.

But the problem isn't the buyers, it's the building — the Vue at Brickell.

What Bustos didn't realize is that her building has been blacklisted by lenders as have dozens of other condos in South Florida. Banks and mortgage lenders compile lists of buildings they find too risky for lending, and they refuse to finance purchases there.

And that further complicates the obstacles faced by owners of condo
units in these buildings.

Bustos bought the condo for $690,000 as an investment in 2005 and now can't afford the monthly expenses of nearly $5,000 that include two mortgages and association fees.

It's already tough to find buyers in the current market. And this drastically limits options. Bustos and other condo owners like her can't refinance, can't sell and unless they find a cash buyer are likely headed to foreclosure.

The Vue at Brickell is one of dozens of condos across mortgages.

In the Vue's case, the "high foreclosure rate and declining value" in the building is cited by BankUnited as the main reasons the property should be shunned.

The Vue is also on a list maintained by Popular Mortgage, but brokers say the project is widely avoided in the lending industry.
But the Vue is far from being alone.

Local and national lenders continue to add to the dozens of projects to the lists of condos that don't meet their loan criteria. Banks and other real estate lenders are loath to admit they have inventoried projects they refuse to lend in. To avoid controversy, some lenders instead say they keep lists of eligible projects.

The Daily Business Review obtained lists by three large local lenders, including Washington Mutual. Executives at other financial institutions refused to confirm their banks maintain such lists or did not want to comment for this article.

"Many of the lenders are not open about it," said one mortgage broker who asked not to be identified. "But when you send them an e-mail to inquire about a loan and they respond by saying they are not lending in that building, you assume they have an internal list."

These kinds of lists have always existed, said Michel Fayad, managing director of Miami-based American Mortgage Lending, but they were much shorter and didn't have as much impact on a lender's decisions in the past. The downturn in residential real estate — in particular the
condo market — has lenders on high alert.

The Washington Mutual document, which includes eligible and non-eligible projects nationwide, cites more than 40 ineligible projects in Miami-Dade County, about 25 ineligible in Palm Beach
County and about a dozen projects in Broward County.

A BankUnited list shows the majority of the projects the bank has categorized as "non-permissible-condominium projects," are in Miami. Most were added to the list in January.

BankUnited's list also includes the reasons the bank considers the various projects off limits.

In most cases properties are to be avoided for "high investor concentration and declining market value," but some are included because of pending litigation, delinquency issues with the homeowner's association, high foreclosure rates or how many loans a bank already has on units in the building.

The lists include finished buildings and projects still under development.

Prominent projects on BankUnited's list include the Related Group's 50 Biscayne and 500 Brickell; Terra Group's 600 Biscayne and 900 Biscayne, and Cabi Developers' Everglades on the Bay.

Executives at the sales centers for the projects declined to comment and messages left for the developers were not returned.
"Nonwarrantable"

There are a variety of reasons why a building would be branded as ineligible for lending. Most factors reflect criteria set by Fannie Mae and Freddie Mac, but some are based on lenders' internal risk-based criteria.

Loans that meet the standards of Fannie Mae [Federal National Mortgage Association] and Freddie Mac [Federal Home Mortgage Corp.] are eligible to be sold in the secondary market to the two government-sponsored but privately owned mortgage finance giants. For that reason, lenders have always found it safer to issue loans in projects that are eligible to be sold to those companies.

"Lenders need an exit strategy," said Grant Stern, owner of Miami-based Morningside Mortgage Corp. "If a condo is nonwarrantable they may lose that exit strategy."

A building may be deemed "nonwarrantable" if a large number of its condo units are owned by investors. About 70 percent of the building must be owner-occupied for it to be considered suitable to be sold to Fannie or Freddie, Stern said.

The number of pre-sales; litigation involving developers, condo boards, vendors or unit owners; condo association financial problems; and many other factors are also used to measure the risk.

Fannie Mae maintains a list of approved projects and provides lenders with the guidelines and a questionnaire to determine project's eligibility.

A project's eligibility can be revised as the status of the building changes. When a project is found ineligible under Fannie or Freddie guidelines, it may or may not affect the lender's decision but in the past six months the ineligible status has caused many lenders to stay away from those projects, Fayad said.

Lenders also are making decisions exclusive of outside guidelines, said Fayad, who used to work with 45 lenders willing to provide financing in a variety condo projects. That list of lenders has dwindled to about 20.

South Florida mortgage brokers say three Miami projects are notorious for being rejected by lenders — Jade at Brickell Bay, The Club at Brickell Bay and The Vue at Brickell.

The Jade and The Club at Brickell appear on at least three lists of projects ineligible for financing, including lists from BankUnited, Washington Mutual and Popular Mortgage.

Ocean View, a Sunny Isles Beach condo conversion project, appears in multiple lists, according to mortgage brokers, including one maintained by local lender Popular Mortgage.

A West Palm Beach condo conversion project, 2560 S. Ocean Drive, also appears on multiple lists. Representatives of the project's developer, Miami-based VH Capital Partners, did not return calls by deadline. Not all hope is lost

As difficult as it is to find financing, there is hope. Even in extraordinary cases like the Jade, buyers are still able to get financing, but a substantial down payment is required, Fayad said.
He said after many attempts he found a lender willing to finance a Jade condo for a buyer who was buying a unit out of foreclosure from a bank.

Miami-based Sunset Lending approved the loan, but the buyer had to put 40 percent down.

Foreign buyers, who want to take advantage of a weak dollar and who could rescue many condo developers in need of sales, are being asked to put down as much as 70 percent of the purchase price and many lenders won't provide financing to them at all, Fayad said.

Projects considered ineligible for financing by traditional lenders are finding more acceptance from "hard-money lenders," he said, but that comes with a price. Hard-money lenders normally are private investors willing to issue loans on real estate properties that are nonconforming with bank standards. They normally lend on shorter terms with higher interest rates and require lenders to put at least 30 percent down.

Buyers that normally would pay a 5 percent to 6 percent interest rate, should expect to pay more than twice as much when borrowing from "hard-money" lenders. With proper timing, some buyers and owners still might find financing, even if their building does not meet some of the lending guidelines. "I would like to think it can't get any worse," Fayad said. "But some lenders are still catching up. You may find a project listed as ineligible with one lender, but while the other lenders catch up, you may be able to get something for that building. Once they all catch up it will be much tougher."

Real estate broker Alejandro Diaz-Bazan, principal of Miami-based South Florida Foreclosure Group, said the condo market is being forced into a cash-buyer's market.
He is selective of potential buyers he takes on and requires they be pre-approved for loans. Even his high-income buyers are finding limited financing.
"They are putting down 40 to 50 percent of the loan value" he said, citing one client who had a Wachovia account in the seven digits and had to put down 50 percent on a recent purchase of a Miami condominium.

In many cases, if it is widely known that a building has been flagged, a lender that may not have compiled a list won't even take the loan application, he said. "It hurts the value in the building
tremendously." For that reason lenders tend to be careful how they categorize ineligible projects.
Melissa Gracey, a spokeswoman for BankUnited, said the bank's list is "risk-based."

"It's based on a lot of different factors and a lot of them mirror criteria from Fannie Mae," she said. Gracey said she didn't have more information about the lists and that the bank would not have a mortgage department representative available for comment by deadline.

Washington Mutual and Popular Mortgage executives also did not return calls for comment.
Developers of about a dozen prominent projects on the ineligible lists also did not return calls seeking comment on how the lending cutbacks affect their projects. But in many cases, developers are no longer involved and have sold out the buildings.

Before lenders begin to reconsider lending in the troubled buildings, there would have to be a sign of stability, Fayad said. The number of foreclosures would have to drop; more units would have to be owned by residents, not investors; and the condo market in general would need to improve.

But for now, lenders have to get used to realistic lending practices, Fayad said.

"These guidelines always existed but lenders were willing to go the extra mile," he said. "Now they are not, and we are back to giving mortgages to people who should have mortgages." In other words, speculators and risky borrowers need not apply.
"This is just the result of mistakes that should not have been made. A lot of people will be at loss before this market adjusts."

Henry B . Nathan is a Licensed Florida Realtor. Please visit my website to search for:

Florida Condos, Aventura Condos, Fort Lauderdale Condos, Miami Condos, Sunny Isles Condos

Last chance to file HOMESTEAD EXEMPTION

2008-02-11T06:00:00.000-08:00

Last chance to file HOMESTEAD EXEMPTION

You must file before March 1, 2008.

Information for Dade County Homeowners.

Property appraiser website:

Applications may be filed with the Miami-Dade Property Appraiser's Office no later than March 1, 2008. Applications can be filed in person at:

Stephen P Clark Center (Government Center)

111 NW 1 Street, 7th Floor.

Miami, FL 33128.

You can also apply for the exemption via U.S. Postal Mail by sending the application to:

Miami-Dade County

Property Appraisal Department

P.O. Box 013140,

Miami, FL 33101-3140

In addition to the application, you must provide one proof of ownership, and two proofs of Florida residency dated prior to January 1, 2008.

Any one of the following Proofs of Ownership can be submitted:

Warranty Deed

Property Tax bill

Notice of Proposed Property Taxes

Homestead Exemption

Automatic Renewal Receipt

Computer Public Value Inquiry printout

Any two of the following Proofs of Florida Residence can be submitted:

Driver's License

Automobile Registration (no lease)

Voter Registration

1040 Income Tax Return filed in Florida or W-2 with Florida address

Intangible Tax Return filed from Florida

Florida Unemployment Compensation Registration

Employment letter with Employer's letterhead

Child School report card or School letter attesting child's registration

Moving van receipt from another county or state

Doctor's letter with Doctor's letterhead

Church letter with Church letterhead

SSA-1099 fiscal year Social Security Statement addressed in Florida

Broward residents can apply online.

Go to: https://www.bcpasecure.net/homestead/index.cfm

Remember that Homestead Exemption has been recently increased by an additional $25,000 (not applicable to school taxes). Homestead Exemption gives the homeowner a valuable protection against future tax increases. Assessed value increases are limited to 3% per year.

You must be a Florida resident, and a US. Citizen or US permanent resident with a 'green card' to qualify for Homestead Exemption.

Henry B. Nathan is a licensed Florida Real Estate Professional.

Please visit my website to search for:

Aventura Condos, Miami Beach Condos, Fort Lauderdale Condos, Hollywood Condos

Questions about 'Portability' in Florida Real Estate Taxes

2008-02-04T09:31:00.000-08:00

With the approval of the property tax reform on January 29, many homeowners saw a new window of opportunity. Specially ‘empty nesters’ living in large homes hoped to be able to downgrade and move to smaller places; or the opposite: new ‘up and comers’ prevented from moving to better homes by the fear of very large increases in their tax bills will have a great incentive now.

How will this ‘portability’ work?

There are two elements to be considered in a typical “save-our-homes” tax bill:

The just value or market value,

and the assessed value, which is reached after calculating the maximum yearly increase of 3% since the homesteaded property was purchased.

The ‘portability’ amount is the tax advantage that a ‘save-our-home’ beneficiary can ‘transport’ when moving to a new home, up to a maximum of $ 500,000. It is equivalent to the difference between the just value and the assessed value.

So far so good, but…

A lawsuit has been filed in state court, by a group of citizens who want to overturn the whole ‘save-our-homes’ amendment. They are now saying that they will possibly include the new ‘portability’ exemption in their lawsuit.

Florida Governor, Charles Crist and supporters of the new amendment have stated that the Save-our-homes amendment withstood similar court challenges in the past. However, many Constitutional Law experts think that the portability amendment could be successfully challenged as violating non-residents owners and first time home buyers.

This scenario is adding a large element of uncertainty. People who move now are faced with the possibility of losing the tax deduction if a judge rules that the ‘portability’ amendment is unconstitutional. In this case they would be stuck in a new home, having lost the advantage that was their main reason to move in the first place.

The possibility of derailing the new amendment provision is real, as per the words of Broward County Property Appraiser. However it must be implemented since it is law.

Meanwhile, a curious and unusual issue is faced by County Appraisers. An influx of people inquiring about raising the present “just value” of their homes. That would automatically increase the amount of tax relief that they could transfer to the purchase of a new home.

Since the transferable benefit is calculated by the difference between “just value” and assessed value, raising the “just value” would do the trick.

There are some objections about the validity of these claims. Complaints filed by homeowners have always been about their property being valued too high, not too low. There are some technical issues since the Value Adjustment Board, who decides about these complaints is supposed to decide only if the property is “over assessed”.

So much for the absurdities and inequities that plague much of our tax system.

Henry B. Nathan is a Florida Real Estate Professional. Please visit my website:

www.condo-southflorida.com

Homestead and other exemptions in Florida Property Tax

2008-02-03T08:17:00.000-08:00

On January 29, 2008, a constitutional amendment was approved by Florida voters.

It changed substantially the structure of the homestead and “save-our-home” exemptions. Here is where we stand now:

Homestead exemption.

For Florida residents who have filed for this exemption.

- $ 25,000 basic exemption

- Additional $ 25,000 for all homes assessed at $ 75,000 or more. This additional exemption does not apply on the school portion of the tax bill. (about 36%)

- Additional $ 25,000 Senior Citizen exemption. Must be at least 65 years old, and their total household income does not exceed $ 24,214 (amount yearly adjusted for inflation).

This exemption must be renewed annually, including IRS tax return or proof of non-filing.

- Additional $ 500 Widow/widower exemption. Not eligible if remarried.

- Additional $ 500 Disability/Blindness exemption.

- Additional $ 5,000 Veteran Disability exemption. Higher if combat disabled veteran.

- Full Exemption for Veteran service-connected total and permanent disability.

- Full Exemption for totally and permanently disabled persons. Subject to yearly income not exceeding $ 23,604 (adjustable for inflation)

- “Grammy Flat” exemption. When building additions to provide living quarters for parents or grandparents, exemption for the amount of the new construction, up to 20% of the homestead value.

Business Equipment Exemption

A new $ 25,000 exemption. Currently all businesses are subject to an annual tax on tangible property. Small businesses with less than $ 25,000 in tangible property, are not required to file anymore tangible property tax returns.

Save-our-homes

This amendment, approved in 1992 limits the increase of assessed values of homesteaded homes to 3% per year.

Portability of Save-our-homes.

Homesteaded owners can move this benefit from one homesteaded home to another, up to $ 500,000. To be eligible, the new property should be purchased within two years of abandoning the Homestead of the previous home. This portability can be used an unlimited amount of times. One way to calculate this is to calculate 85% of the new home purchase price, then divide that number by the 2007 “just value” of your current home. Multiply that amount by your present "save-our-homes" value and the final result will be your estimated new Save our Home value. (this is only an approximate calculation). Another way to explain is: The difference between the "just value" of your home and the "save-our-homes" assessed value can be transferred as a reduction to your new home assessed value, up to $ 500,000. We anticipate some confusion to be clarified by Florida Department of Revenue advisory opinions.

All other properties

that do not have the homestead protection, such as commercial real estate, rental properties, second homes, investment properties have a new protection. Their taxable value cannot increase more than 10% per year. This cap does not apply to the school portion of the tax bill.

I am a licensed real estate and mortgage broker in the state of Florida. Please visit my website:

http://www.condo-southflorida.com

360 Degrees of Condo

2008-01-28T09:39:00.000-08:00

Just completed, in North Bay Village, a magnificent project, the 360, still has a few units for sale.
They have recently adjusted their prices and that means great deals for buyers.

One of the most beautiful developments in that great location, here is an overview of the 360 condos:

414 luxury waterfront condominium residences on 6.8 acres

West Tower (A) 15 stories with 279 condominium homes
East Tower (B) 12 stories with 99 condominium homes
Marina Residences: 3 stories with 36 marina condominium homes
Architect: Corwil Architect Inc.

360 Condos Amenities:

Elegant covered entrance
Full time valet service
Elevated pool with spa and bayviews in The West Tower
Bayside Pool and clubhouse East Tower
Private Marina and shorefront promenades
State-of-the-art fitness center with men and women's saunas and locker rooms
Private marina
Gated Entrance
24 hr. guard service at entry gate, each lobby, and roving patrol
Over 6.5 acres of lush landscaping surroundings
Garage Parking.

360 Condos Interior Features

Elegant 16" x 16" Marble Flooring in Kitchen and Foyer
Choice of Designer Selected Carpeting in All Bedrooms and Living Areas
Pre-Wired for Ceiling Fans in All Bedrooms and Living Room
Braced Outlet for Lighting Fixture in Dining and Breakfast Areas (per plan)
Pre-Wired for Cable Outlets in All Bedrooms and Living Room
Pre-Wired with Category 5 High-Speed Wiring for Data/Voice Transmission In All Bedrooms, Living Room and Kitchen
Textured Ceilings and Smooth Walls throughout Living Areas
Impact Resistant, Floor-to-Ceiling Sliding Glass Doors
Ventilated Closet Shelving
Tinted Glass Balcony Railings
Oversized Luxurious Balconies
Full-Size Stackable G.E. Washer and Dryer
High-Efficiency Central Air Conditioning and Heating System
Marble Window Sills
Decora Light Switches
Fire Protection Sprinkler System throughout and Smoke Detectors
Custom Designed Kitchen Features
Stainless Steel G.E. Profile Appliance Package: 22 Cu. Ft. Side By Side
Refrigerator With Ice and Water in Door
Multi-Cycle Pot Scrubbing Dishwasher
Built-In Microwave Oven with Integral Hood and Light
Self-Cleaning Electric Range with Smooth Porcelain Cooktop
Contemporary Custom-Built Cabinetry with Glass Doors and Stainless Finish Pulls
Granite Countertops with Backsplash (choice of 2 colors)
Elevated Breakfast Countertop (per plan)
Stainless Steel Undermount Sink with Moen Chrome Faucet and Food Disposal
Custom Designed Bath Features:
16 x 16 Marble in Master Bath, Floor to Ceiling in Shower
Roman Tub with Whirlpool Jets in Master Bath
Glass Shower Enclosure in Master Bath
36 Raised Custom-Built Double Vanities in Master Bath
8 x 8 White Gloss Ceramic Tile on diagonal in Secondary Baths
Contemporary Custom-Built Cabinetry
Cultured Marble Vanity Tops with Bullnose Edge
Moen Villeto Series Faucets and Accessories in All Baths
Medicine Cabinet
Oversized Mirrors
Vanity Lighting
Halogen Track Lighting

Models description

RESIDENCE A-1
1 bedroom, 1.5 baths
994 sq.ft. total, 900 a/c

RESIDENCE B-1
2 bedrooms, 2 baths
1,426 sq.ft. total, 1,252 a/c

RESIDENCE B-2
2 bedrooms, 2 baths
1,569 sq.ft. total, 1,303 a/c

RESIDENCE B-3
2 bedrooms, 2 baths
1,395 sq.ft. total, 1,232 a/c

RESIDENCE C-1
2 bedrooms + den, 2 baths
(3rd bedroom option)
1,752 sq.ft. total, 1,557 a/c

RESIDENCE C-3
2 bedrooms + den, 2.5 baths
1,873 sq.ft. total, 1,692 a/c

RESIDENCE C-4
2 bedrooms + den, 2.5 baths
(2 split Masters)
1,966 sq.ft. total, 1,800 a/c

Marina Residence
2 bedroom + den, 2 baths
(3rd bedroom option)
1,737 Sq.ft. total, 1,431 a/c

Please look for more great developments at:

http://www.condo-southflorida.com/precon_2_1.php

www.condo-southflorida.com is a well recognized website dedicated to bring buyers the most updated and complete information about:

Aventura Condos, Hallandale Condos, Fort Lauderdale Condos, Miami Condos

Three Judgments in Condo Buyers vs Developers Lawsuits

2008-01-17T08:16:00.000-08:00

I have found some very interesting information in a business law publication.

Daily Business Review January 17, 2008

By: Polyana da Costa

Is there a way out? That's a question many buyers under contract to purchase condominium units in South Florida asked their attorneys as closing time approached.

In an overwhelming number of cases, attorneys said yes to their clients and filed suits against the developers, but now the question is — will that work?

Few court orders — that might serve as precedent to other cases after the appeal process — have come out since a wave of lawsuits alleging breach of contract for many different reasons were filed.
Out of three recent judgments in Florida, one favored the developer and two others favored the buyers:

• D&T Properties v. Marina Grande Associates Ltd. — Palm Beach Circuit Judge Jonathan Gerber issued a final judgment after a nonjury trial in July stating the buyer was not entitled to cancel the contract based on an increase in condo assessments because the buyer could afford the increases. The case is being appealed in the 4th District Court of Appeal.

• Pugliese v. Pukka Development — U.S. Magistrate Judge Frank Lynch Jr. issued a summary judgment in October that found the buyer was entitled to be refunded the deposit because the project was not exempt from the federal Interstate Land Sales Full Disclosure Act.

• Meridian Ventures LLC v. One North Ocean LLC — U.S. District Court Judge Daniel T.K. Hurley in December issued a summary judgment favoring the buyer in a similar case. Projects with fewer than 100 units were believed to be exempt from the federal act. The federal court found the two projects were exempt from some but not all provisions in the act.

The two cases favoring buyers also are being appealed and have raised concerns among some attorneys and developers.

Gary Saul, a Greenberg Traurig attorney who represents developers, wrote on the firm's Web site in October that the Pukka case was significant and was being aggressively appealed.

"If the Pukka order is upheld by the federal appeals court, it likely will have a significant impact on the ability to enforce contracts presently utilizing the One Hundred Lot exemption," Saul wrote.

Saul said in a phone interview that the "Pukka decision was contrary to existing Florida case law and the opinion of the director" of the Department of Housing and Urban Development.

Saul said the firm has won many summary judgment hearings and motions on behalf of developers. He said they were "little victories" and declined to name or discuss the cases in general.

Although the cases being decided will help shape future decisions, it's too early to tell the outcome of hundreds of other lawsuits.

Most likely, buyers will have a difficult time trying to win condo cases, said Tom Ringel, a partner with Markowitz Davis Ringel & Trusty in Miami.

"Most contracts are very one-sided contracts," he said. "They were written for developers and are there to protect developers. While some buildings may have special circumstances, in general it is very difficult to litigate this issue."
Ringel said he has received several phone calls from buyers wanting out of their contracts, but in most instances he does not take the case.

"I don't want to take a case and make them pay if I know they won't win," he said.

Bart Houston, an attorney at Adorno & Yoss in Fort Lauderdale, agrees with Ringel but said there is room for negotiation with developers.

Rather than taking the cases to court, he has recently helped some buyers work out settlement agreements with developers.

The agreements can't be disclosed, but he said they involved buyers accepting refunds less than the full deposit or developers agreeing to give the buyer a discount on the unit.

"It's a case-by-case basis, but I advised them to settle based on my review of the complaint, an estimation of what it would cost to litigate and the amount of the deposit," Houston said.

Fighting to get out of a condo contract can cost buyers anywhere from $10,000 in simpler cases to $60,000 in cases with deposits of about $300,000 to $400,000 at stake, according to attorney Jared H. Beck of Beck & Lee Business Trial Lawyers in Miami. On a contingency basis, most attorneys would charge about 30 percent to 40 percent of the refunded deposit, he said.

The litigation process on most of the condo contract lawsuits is likely to be lengthy — about two or three years if filed in state court and longer in federal court, Houston said.

"The litigation parties that are smart are going to get into mediation pretty quickly," he said.

Developers will be hurt the most by the delay because they won't be able to sell the units while they are being disputed in court, which will make lenders impatient and ask to be repaid, Houston said.

Lenders also have gotten in the way of developers and buyers who want to settle, said Robert Cooper, an Aventura attorney who has filed dozens of lawsuits on a contingency basis for condo contract holders against developers.

"I have talked to a major developer who wants to go to mediation, and the contract requires mediation before a suit is filed, but he said he can't negotiate because of the lender," he said.

Cooper did not disclose the developer's name.

Lenders have assignment rights to contracts as they have rights to the real estate, Cooper said.

"They can't do anything without the lenders' approval, and from what I've heard the lenders are not giving them the cooperation they need to deal with this market," he said.

Cooper has settled about 20 cases, which he considers a small portion of the lawsuits involving multiple buyers that he has filed.

Most of the developers willing to settle are those who have closed on about 70 percent of the units in a building because the main construction loan has been paid off, he said.

Cooper is more optimistic about condo lawsuit outcomes.

Developers' contracts are indeed written in language that favors the developer, Cooper said. But in many cases "developers overreached in trying to protect themselves so much that they created unenforceable contracts."

"I call them illusory contracts, meaning the developer used overreaching language and put in a provision that said they could change anything they wanted including square footage, finishes, colors, anything," he said.

Leading luxury condo builder Related Group used a contract like that in most if not all of its South Florida developments. Based on his review of dozens of local contracts, Cooper said other developers have used the same contract in their developments. He declined to name others.

Other attorneys who did not want to be identified said some projects are known to have "bad" contracts and "good" contracts.

The "good" contracts, in the eyes of attorneys, were well-written to protect the developer without overreaching and make it difficult for a buyer to get out. Among them are the Edgewater, a 307-unit development in West Palm Beach; Vintage at Lighthouse Point, a townhouse community by WCI Communities; Orchid Grove, a development in Pompano Beach by Tarragon; and the Paradiso condo in Miami Beach.

Attorneys say they are being selective despite the large number of lawsuits being filed.

Beck said he is handling several cases on behalf of buyers who want out. But only 10 percent of the numerous inquiries he gets each week represent a viable claim.

"A lot of the cases that don't represent valid claims may end up in court," he said. "But you are also going to see a number of cases where buyers are successful — primarily in areas where something substantial was altered in the project and those that were not delivered in time."

Among the most common claims used in contract cancellation lawsuits are:

• Material and adverse changes — buyers can cancel contracts when "material and adverse changes" were made to condo documents filed with the state. It's up to the courts to decide whether a change was "adverse." Lawsuits claim changes that vary from square footage to condo association fee increases.

In the Marina Grande ruling, the judge found the change was not adverse to the buyer because the buyer could afford to pay.

"Marina Grande will be a very important decision," said Beck, who has been watching the cases closely. "Regardless of whether the courts uphold the result or not, I don't think the buyer's personal situation should have much to do with the decision."

Cooper agreed.

"It's basically the same as leasing a car and having a bill sent to you for twice the amount and being required to pay because you can afford it," he said.

• Interstate Land Sales Act — A 1968 federal law to protect land buyers. The law has been applied to condos and has several provisions including fraud related to misrepresentations in the contract, a requirement to give the buyer 20 days written notice in case the buyer is in default and a requirement to file certain property documents before construction. Developers are exempt from the act under certain circumstances, including a commitment to deliver a unit within two years.

"It's very risky to promise a building in two years, and many of those are being challenged in court," Beck said.

In some cases, developers have found their way around the two-year commitment.

"Developers were looking further ahead," Houston said. "If they knew they wouldn't complete the unit, they sent out a letter to the buyer saying 'we've decided to give you an upgrade but we need an extension' and buyers would sign accepting the extension."

One could argue that's deceptive trade, and buyers would have a good chance of winning the case, Houston said.

Many of the lawsuits being filed revolve around the complex federal act and its exemptions.

Some developers believed they were exempt from the act and didn't comply with some aspects of it. Now many attorneys are relying on that to get their clients out of contract.

Please visit my website: www. condo-southflorida.com to find out more about:

Aventura Condos - Sunny Isles Condos - Miami Condos
Sunny Isles Condos - Hollywood Condos - Miami Beach Condos

What to vote on January 2008 Property Tax Ballot

2008-01-16T20:14:00.000-08:00

On January 29th, 2008, a Florida Property Tax Reform proposal will go on the ballot.
A 60% majority of votes is needed to pass the reforms approved by the Legislators in October.

An extended campaign by Florida's Governor, with the support of Florida Realtors Association is under way.

My opinion?

Although pathetically insufficient and inadequate, I am seriously thinking of voting yes.
Why? The reduction of yearly taxes to the average homestead homeowner will in the best case reach about $ 220 per year. Non residents, investors, business real estate owners will see no improvement at all.

The possibility of the cities and counties bypassing the tax reduction by increasing their tax rate will probably wipe out all effectiveness of even this small relief, and the "drop as a rock" promise will just be a delusion.

However, the portability of the "save our homes" protection has been reasonably addressed and that will be an important factor in the revival of real estate in our state. Some people will be able to upgrade or downgrade on their present homes without the fear of losing this benefit.
How much will that affect the market? It remains to be seen, but it will definitely be a factor.

There are other proposals which could go on a new ballot in November 2008. One of them is the "cut property taxes now" which should limit the maximum of taxes paid to 1.35% per year on the taxable value. This would also cover snowbirds, investors, businesses, and new home buyers. It should be a much more realistic way of addressing the free spending of our
governments, avoiding loop holes and confusions. Somehow in the same way as California has successfully tackled this issue. And it will attenuate the inequity of the present tax laws.

Therefore, since we accomplish just a step ahead and leave the door open to more agressive
solutions, I am seriously thinking of voting yes on January 29.

If you don't agree, let me know why.

I am a Licensed Real Estate Professional in Florida.
Please visit my website: www.condo-southflorida.com

Untangling Florida Property Tax Riddle

2007-12-15T12:55:00.000-08:00

Untangling Florida Property Tax Riddle:

A) First we had the Florida Legislature rolling back property taxes (to their 2006 level!). However it left the door open for cities to override the rollback by a two third majority vote, which was actually done by a few of them.

Then they put on the January 2008 ballot a package of tax relief which included raising the homestead exemption to 75% of the first $ 200,000 of property value, then 15% on the next$ 300,000. Beneficiaries of "save our homes" would lose that benefit if they opted for the homestead exemption increase. We called that "the poison pill".

B) On October 29, after a judge had thrown out the ballot package, due to its confusing language, and weeks of indecision, the Legislature finally approved a new ballot proposal which consists of:

- Increasing the homestead exemption by $ 25,000, not applicable to school taxes, which would reduce it to a total of $ 40,000 approximately, instead of the present $25,000 exemption? The savings would amount to an average of $ 220 per year said the legislature.

- Establishing the 'portability' of the 'save our homes' protection, up to $ 500,000

- Putting a cap of 10% on yearly increases of assessed value of non homestead and commercial properties.

We called this proposal: the 'drop like a pebble'.

C) At the end of November 2007, a coalition of different group was starting to collect the 611,000 signatures needed to put a new tax reform project on November 2008 ballot.

The new proposal consists mainly of imposing a property tax limit of 1.35% per year on the taxable value of on all properties, including non-homestead and commercial real estate.

It would keep the 'save our home' protection. The sponsors claimed that it would reduce the average tax bill by 26%.

In this proposal, there is no mention of 'portability' of the 'save our homes', no protection against violent raises of property value like those that hit us between 2000 and 2005.

The sponsors called it: 'cut property taxes now' and any owner can add his signature on their website.

D) A new initiative is pending review from the Taxation and Budget Reform Commission.

It would eliminate all Florida school taxes and replace them by expanding the Florida sales taxes to include services.

The background of all these proposals is the general opposition of public employees, and local governments to anything that would have any meaningful impact on their spending.

They are actively campaigning with their eternal threats of crippling education and schools, cutting back on police department, ambulances, and fire departments.

I am not impressed. And I will not buy into their menaces. Florida budget has bubbled to levels we wouldn't have dreamed about a few years ago. At the same time property tax collections have doubled during the last five years, from about 16 billion to more than 30 billion. So what are these complaints all about when we try to roll back a couple of billions for the sake of our state and our people's economy?

It's about the ever-increasing public sector, with its dozens of cities, bureaucracies, police and fire departments, mayors and commissioners, which is a luxury that we can't afford when our education is at the bottom level in the US, our public health problems have not been seriously addressed, and so many people are in the danger of loosing their homes on the wake of sky-high taxes, insurance premiums and mortgages.

One of the main issues that worry them are the retirement pensions of this new-formed social class. These pensions are steadily guzzling their budgets and there are starting to feel the fear of loosing these benefits that are negated to many Floridians.

I will always affirm workers' right to secure their retirement. I will never negate the importance of good police and fire departments. But everything must be done within the reasonable and the possible.

That is the reason why we should address the problem in its deep root. Uncontrolled spending must be stopped and rolled back. Efficiency must be the rule and not the exception. And our local government, as well as our State government must abide by the same belt-tightening measures that they have forced onto a majority of our population.

One of the first steps, in my modest opinion, is the regrouping of city services, and the undoing of this hundred-head bureaucracy that we don't need.

The exercise of swapping and juggling with tax revenues is proving to be a vain purpose. We have to modify our Tax Property system to make it more equitable; encouraging first time buyers, investors and out-of-state buyers, instead of chasing them away. This won't be accomplished without reducing our government expenses to acceptable levels.

We definitely need a reform. We do not need a temporary patch. A big part of Florida's future depends on what is done now. All parties should agree on this basic fact and work to reach a real solution.

Please visit my website: http://www.condo-southflorida.com

The Peninsula II has been completed

2007-11-25T05:58:00.000-08:00

In Aventura, the new Peninsula II is a paragon of luxury, featuring a two-story health club overlooking the bay, a spectacular two-story lobby opening to the waterfront, tennis courts, and jogging paths. Also, all residence will have floor-to-ceiling glass walls alowing for panoramic views of the intracoastal and the Atlantic Ocean.

Peninsula II is located next to Williams Island, directly in the heart of Aventura, Florida. The affluent area of Aventura has some of the best shopping, restaurants and an exciting nightlife in all of South Florida. The location of the area enables quick access to many nearby desirable destinations; Bal Harbour, Ft. Lauderdale, and South Beach to name just a few. The Penisula II is also conveniently located within 20 minutes of Ft.lauderdale and Miami International Airports.

GENERAL FEATURES

2 Luxury Condominium towers overlooking a marina, the intracoastal waterway
Manned Gatehouse
Heated swimming pool and spa
Barbecue/ bar area in a garden setting
Sunrise terrace with shade pavilion
Recreation room
Fitness center with state-of-the-art exercise equipment, steam room and sauna.
Sunning decks with pool furniture and umbrellas
Tennis courts

BUILDING FEATURES

Private allocated storage facility
Valet parking services
Tinted glass for energy efficiency
Exterior doors and windows that meet or exceed
South florida hurricane standards

RESIDENCE FEATURES

Decorator ready unit
High ceilings throughout
Double entry door
Marina or Water views in all residences
Security, emergency medical call and fire alarm systems with 24-hour on-call monitoring and entry door protection
Pre-wired for television, cable tv and telephone designed for High-speed data transmission
Expansive open-air terraces with glass panel railings
Fire protection sprinkler systems
Sliding doors and glass balconies offering grand views of the intracoastal waterway
Individually controlled high-efficiency air conditioning and heating systems with digital thermostat
Laundry room with top of the line washer/dryer and storage

KITCHENS
Imported cabinetry
Granite kitchen countertops
Under-mount double stainless steel sink with single lever faucet fixtures and disposals
Stainless steel appliance package

For more details, please go to: Peninsula II

Please visit my website: http://www.condo-southflorida.com where you browse through hundreds of condo buildings, find free search tools, area information about South Florida and much more.

New Florida Tax Property Reform Proposal

2007-11-22T14:02:00.000-08:00

A new proposal could go before voters in November 2008, sponsored by an umbrella group formed by several organizations which were developing different plans, but are uniting their efforts.
In essence, the plan proposes a general cap of 1.35% on the taxable value of any real estate property, as its yearly property tax.
This coalition must be able to collect around 611,000 voters’signatures by the end of January 2008
The tax cap would also apply to commercial properties and non-homestead homes such as those owned by ‘snowbirds’. It would preserve the ‘Save our Homes’ provision to cap at 3% per year any increase in the assessment of homestead homes, as well as the present homestead exemption.
I tend to like it, even though it might lack somehow to address all issues:

- It does not address the ‘portability’ of ‘Save our Homes’, which means that homeowners could carry these benefits when they upgrade our downgrade for their present home. This is becoming a key factor in reviving the real estate market.

- Since it is still linked to the actual value of a home, there is no protection if we should face again a violent raise in property value, as was the case during the “boom” period of 2000-2005. It limits the abilities of local government to raise millage percentages by limiting property tax to 1.35% of taxable value. This is a very effective short-term solution, but would fail to protect us if another ‘boom’ period raises the assessed value of our homes above inflation levels. A provision that future assessments increases should not exceed the official inflation rate could address this issue and avoid eventual spiraling “assessed values”. That would again put as in the sad situation our real estate market is living today.

However, the proposal would be a great step in the right direction.

Here is the text of the proposal:

Ballot Summary
Ballot Title: 1.35% property tax cap, unless voter approved

Provides that the total property tax on any parcel of real property shall never exceed 1.35% of the highest taxable value of the property. This property tax limit shall apply to all property taxes except property taxes approved by voters. Distribution of revenue from parcels that have reached the 1.35% limit shall be determined by general law. Does not amend Save Our Homes, the Homestead Exemption, or any other exemption.
Full Text of the Proposed Amendment

Article VII, Section 9 of the State Constitution is amended by adding a new Paragraph (c) to read:

ARTICLE VII FINANCE AND TAXATION
SECTION 9. Local taxes.
(c) Notwithstanding any other provision contained in this Constitution, the maximum amount of all ad valorem taxes collected by counties, school districts, municipalities, and special districts on any parcel of real property shall not, when combined, exceed 1.35% of the parcel’s highest taxable value. The term “taxable value” refers to the value of real property to which millage rates are applied. The Legislature shall, by general law, provide for the distribution of tax revenues derived from parcels for which the combined ad valorem tax levies exceed 1.35% of the parcel’s highest taxable value. This subsection does not apply to ad valorem taxes levied for the payment of bonds issued pursuant to Section 12 of this Article or levied for periods not longer than two years when authorized by a vote of the electors.

The proposal can be reviewed at www.cutpropertytaxesnow.com

Please visit our website: http://www.condo-southflorida.com
and enjoy a wealth of information and search tools for all inquiries about
Florida Real Estate.

Jade Residences at Brickell - Simply the best

2007-11-20T11:44:00.000-08:00

By day, Brickell is the pulse of Miami's International business community, housing the city's most prestigious banks and financial institutions. By night, it transforms into a bay front oasis, boasting Miami's most elegant condominium residences.

The so called Brickell area extends south of the Miami River to SE 26th Road (the Rickenbacker Causeway).

Sometimes mentioned as Millionaires Row, the southern portion of Brickell Avenue, (US-1)is home to the Miami Financial District as well as the site of new high rise luxury condominium developments that constantly redefines the Miami skyline.

On the East side is Brickell Key. Brickell is divided into two sections: Upper Brickell and Lower Brickell.

Upper Brickell is the area north of Southeast 15th Street (Broadway) including the financial district, and is technically part of Downtown Miami. It has a mixed use of both office and residential buildings. The financial district, which is sometimes called the Manhattan of Miami, has the largest concentration of international banks in the US.

Lower Brickell which extends between Broadway and Southeast 26th Road, is mainly residential and includes the Millionaires Row.

Jade at Brickell is one of the most appreciated buildings on Brickell.

Located at 1331 Brickell Bay Drive, it has stunning amenities, great views on the Bay, luxury throughout.
Some of the amenities:

Beautiful pool
Sauna/Spa
Outstanding Fitness Center
Club House
Library
Bar
Ample storage facilities
Business Center
Security
Playground

Technological advances are always present in Jade lifestyle.

With the ease of a touch-screen monitor, they provide: entertainment, information, convenience, and security, as well as wireless internet, simultaneous hi-tech audio and video entertainment throughout the residences. Security and fire-prevention systems are computer-monitored around-the-clock, not to mention a full service business center with all of the latest software and communication systems.

Residences luxury features:

State-of-the-art kitchen complete with Italian designer cabinetry, stainless steel appliances, wine cooler and cappuccino maker. Marble throughout bathrooms and vanities.

When looking to buy or rent a Condo at Brickell Avenue, please check our CONDO SEARCH where you can review all listings in most Brickell Condominium buildings.

If you are looking for a condo or home in the Brickell area, we at www.condo-southflorida.com can assist you and help you find the home, vacation home or investment property, that you are searching for. Our great experience in South Florida Real Estate and our friendly attention will make all the difference.

55 Merrick

2007-11-07T10:59:00.000-08:00

Location:

From Coral Gables' central location, the best of Miami is but a short drive away. Nearby is the cosmopolitan village of Coconut Grove, with its distinguished art galleries, eclectic boutiques, and year-round festivals. The world-renowned night life of South Beach, with its cutting edge clubs and trendy lounges is just a quick 15-minute drive. Miami International Airport is just 4 miles away, and the dynamic financial and business center of down town Miami is only 6 miles from your door, making for a pleasurable commute.

Residence Features:

This exclusive Coral Gables condominium features just 167 one-, two-and three-bedroom elegant residences with the finest interior features and finishes. There is an extraordinary array of floor plans from which to select - more than 20 different layouts are available, including exquisite Penthouses and Townhomes, offering inviting views of the Coral Gables vibrant downtown and exciting cityscape. Private balconies on the sixth, seventh and penthouse levels and private terraces on the fifth level enhance these spectacular city views.

Interiors are thoughtfully designed with ceiling heights of nine feet in most residences; residences on the penthouse level feature ten foot- high ceilings, and townhomes have ceiling heights of twenty feet.

There is imported Italian tile flooring throughout the kitchens, baths and living/dining areas, and bedrooms feature plush wall-to-wall Berber carpeting. The indoor living and entertaining areas are complemented by well-appointed gourmet kitchens with custom-crafted wood cabinetry, upgraded appliance packages and imported granite countertops-many residences also include a spacious walk-in pantry.

Private master suites feature oversized walk-in closets and the luxuries of a master bath with separate shower and bathtub, marble finishes, oversized mirrors and elegant designer fixtures.

Inspired by the architectural style of the Mediterranean, George Merrick envisioned a city that would look like no other. 55 Merrick Way reflects that vision, both in its classic exterior façade as well as in its more contemporary interiors.
Inside, residents are welcomed into a private lobby that is elegant yet modern in its grandeur. Borrowing from the classic architectural elements, the interior spaces are sleek, streamlined and decidedly sophisticated with vibrant marble floors, updated Venetian stucco accents and vivid hues of coral and green.

Residents enjoy the ultimate in amenities, with a lushly landscaped lanai deck with tropical pool on the fifth level, from which to sun, swim and enjoy the magnificent South Florida breezes. For added convenience and privacy, 55 Merrick Way will provide concierge service, covered parking and a 24-hour controlled access security system. In addition,the building is equipped with Smart Technology, pre-wired for high-speed Internet, cable and data/voice access.

Developers:
Dayco has earned a distinguished reputation as premiere developer of distinctive residential and resort communities. Their extensive portfolio includes celebrated properties in such notable areas as Vail, Colorado and Florida’s Miami Beach, Coral Gables, Miami, Palm Beach, Vero Beach, Naples, Ponte Vedra Beach and Ft. Lauderdale.

Recognized for their innovative design, use of contemporary technology, world-class amenities and thoughtful concern for the surrounding environment, each of these developments reflect the common thread of uncompromising elegance and quality.

At 55 Merrick, Dayco has created an extraordinary lifestyle opportunity combining the perfect mix of quality design and construction; exciting recreational pleasures and unparalleled value.

If you are looking for a Coral Gable Condo, a Coconut Grove Condo, or any Florida Condo, please visit our website: www.condo-southflorida.com

Condo Litigation

2007-11-06T14:53:00.000-08:00

From Daily Business Review – November 5th, 2007

New Yorkers sue Related Group, seeking to bail out of contracts

A group of New York residents who hope to break free of their contracts to
buy Related Group condos in Miami-Dade County claim the developer broke New
York, Florida and federal real estate laws.

In proposed class action complaints filed in Miami-Dade Circuit Court,
buyers at 50 Biscayne and Harbour House claim representatives of the
Miami-based developer promised them a return on their investment in
violation of New York law. Most of the plaintiffs are originally from the
former Soviet Union and reside in New York.

Contract holders also allege Related violated federal law by not legally
recording a condominium declaration before putting units up for sale and
violated Florida law by spending deposits on salaries and commissions.

The complaints were filed today for each building by Aventura solo
practitioner Robert Cooper, who has other suits pending on behalf of Related
contract holders.

"These people did not get what they were bargaining for, and now the
developers are using it as an excuse to get away with giving them less than
what they deserve and less than what they paid for," Cooper said. "They
should have never been promoting these as investments, which is what they
were doing."

Another claim by Harbour House plaintiffs cites the quality of kitchens,
following an August lawsuit against Related by Dellacasa.

Dellacasa, the luxury Italian kitchen designer and installer, claims the
developer, the nation's largest luxury condo builder, and its contractors
conspired to steal signature kitchen designs and break a contract with
Dellacasa to cut project costs in a sinking condo market.

Related representatives gave presentations about the properties at Russian
dinner clubs in New York and at South Florida lunches two years ago, the
plaintiffs say.

Contacted on his cell phone, Related CEO Matt Allen dismissed the claims as
a sign of the times in the bearish South Florida condo market.

"We have lawsuits that are driven by speculators who are trying to profit
and don't respect their contracts," he said. "We have to let the justice
system weed these guys out and [get them] to respect their contracts."

The plaintiffs allege Related's promotional dinners in New York violated the
Martin Act, a New York state law governing the sale of securities and
cooperative real estate including condos. Under the law, a real estate agent
can't sell or advertise units in New York unless an offering plan has been
filed with the New York attorney general.

"Any offering of a new condominium unit to a New York state resident must be
registered with the New York state attorney general," said Vincent
DiLorenzo, a professor who teaches real estate law at St. John's University.
"As long as it's being offered to a New York resident, registration is
required."

Irina Herman, one of the plaintiffs in the Harbour House suit, said she
first heard about the dinners through Russian-language AM radio pitches. The
native of Kiev, Ukraine, has lived in New York for 20 years.

A Russian speaker working for Sunny Isles Beach-based M.A.K. Realty handled
sales for the developments and told a restaurant full of people about condo
investment opportunities in South Florida, Herman said.

Without looking at the unit, Herman and her husband put down a $127,000
deposit on a Harbour House unit and signed a contract for $635,000 on Nov.
2, 2006.

She said she thought she was buying an oceanfront unit. But when she came to
Bal Harbour to look at the condo, "I was shocked to see where my unit was
going to be."

The noisy second-floor unit had a view of the Collins Avenue Bridge, Herman
said. The kitchen wasn't the quality she was promised, and the square
footage was smaller, she said.

A certified public accountant with two children, Herman said she's "going to
fight. It's money going down the drain. It's the same thing as killing
yourself."

After moving from place to place in communist Ukraine, Rita Dobrer emigrated
to the U.S. 28 years ago, got married, gave birth to two daughters and got a
divorce. She worked as a housekeeper in Brooklyn making up to $30,000
annually.

After suffering a debilitating car accident, she won a $650,000 verdict
against her insurance company in 2005 and was looking for a way to invest
the money.

While on vacation, an acquaintance introduced her to M.A.K. Realty's
managing director, Tatiana Rybak, who took Dobrer out to lunch at an Italian
restaurant in Bal Harbour and persuaded her to buy two studio units at 50
Biscayne for $276,000 each, Dobrer said.

She said she paid deposits totaling $110,000 on the assurance she would
never have to close on the properties because M.A.K. could resell them if
she couldn't find a way to flip them before construction was done.

Two months later, Dobrer also put down 20 percent deposits on a studio and
three one-bedroom units at Harbour House selling at a total of $2.3 million.
She put one unit in the name of her 18-year-old daughter.

All told, she had committed herself and members of her immediate family to
more than $2.8 million in condos and had paid more than $500,000 in
deposits.

When resale programs started at the condo towers the following year, Dobrer
said she was told her property was too expensive to move. She was shocked
when she realized she was expected to pay the mortgages.

"If they did not promise a resale, how could an 18-year-old get a mortgage
for half a million dollars?" she asked. "No one ever said we'd need to
close."

M.A.K. Realty is not named in the two complains, and M.A.K. Realty owner
Tatiana Rybak declined comment on the condo sales.

For Cooper, the primary culprit is Related, which "should never have been
targeting someone to buy these units, who are inappropriate to buy them," he
said.

Before the condo boom, he said developers carefully vetted the financial
background of their buyers.

"These developers basically decided not to do that and put themselves in
this situation."

Related's Allen said, "I have confidence in our judicial system to do what's
right."

The plaintiffs hope the courts will allow them to escape from financial
burdens they took on in hopes of living the American dream.

"We are the victims," Dobrer said. "Hopefully we'll become survivors

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Sunny Isles Beach Condos

2007-11-06T14:47:00.000-08:00

Florida Condominiums for Sale

Sunny Isles Beach Condos

Searching for Florida condominiums for sale? Is your choice a luxury building on the beach, or at walking distance to the sand? Do you like to wake up in the morning to glance on the wonderful blue water of the Atlantic Ocean, through your floor-to-ceiling windows, while you are sipping on your orange juice and biting on your croissant?

If your budget allows, then you can be a candidate to purchase an ocean front Sunny Isles Condo. On Collins Avenue, you will definitely find this ultra-luxury building, with endless amenities, tennis, racquetballs, pools, saunas, fitness centers, you name it.
Starting in Golden Beach, look at the Ocean Condos. They are some of the most appreciated buildings, built gradually since 2000.

Right across the street, the Oceanview Condos and Ocean Reserve condo conversion present you with more affordable alternatives, albeit lacking the direct ocean views and being only refurbished buildings from the 70’s.

Continue your walk South, and if you would still like to consider more affordable condos in Sunny Isles, what about the Kind David Condos, a 2005 building, with good amenities and well appointed apartments, just across the street from the beach.

You could also consider the Porto Bellagio Condos, (2003) around 171st Street, also on the opposite side from the beach.
What about the Golden Bay condos (1999)? They are a good value.

The Sole Condos are also a good alternative, right on the beach.
Also on the sand, the Sands Point built in 1996 is a great option.

I wouldn’t discard the Ocean Point Condos (2000) right between 173rd and 174th Street and Collins. They are a good compromise on luxury and location.

Let us talk now about some of the best condos in Sunny Isles, although not the newest.
I refer to the Pinnacle Condos with its peculiar shape, a great architectural landmark in Sunny Isles Beach. Great luxury has not been spared, marbles, Italian kitchen cabinets and bathrooms vanities, wonderful views through its floor to ceiling windows.
It is a 1998 building, but one of my favorites.

The Millenium Condos, built just in 1999 have some wonderful units with a frontal ocean view. It is also a high end building.

Le Meridien Condo Hotel, also known as M-Resorts, is a beautiful place, no doubt, if you like this modality.
Trump has built a few places in Sunny Isles. Let’s look at the Trump Palace Condos. Just completed, Trump luxury at its best.
Next to it, is the Trump Sonesta is a condo hotel with very upscale amenities.

La Perla Condos at 166th Street is on the sand. A 2006 building, some of the condos have good water views.

The Sayan Condos have just been delivered in 2007. At the 163rd. Street, they are a good value for your money if you are looking to walk on the beach without crossing the street.
Let me mention Oceania series of building. Located in the south end of Sunny Isles, the first three Oceanias, Oceania 1, Oceania 2 and Oceania 3, are located on the beach.

Oceania 4 and 5 are on the Oceania Island, across from Collins and the Beach.
They were built in the early 90’s. They could be a good midway between the most expensive Sunny Isles Beach condos and the budget condos built in the 70’s.

Talking of these older buildings, we have the Arlen House Condos on Bayview Drive, a couple of minutes walk from the ocean. Then I would like to mention the Winston Towers, a series of large structures on 174th Street, some of them with great views on the Intracoastal, docks and marina make it a good value if you can’t afford the newer condos.
They are conveniently priced and a good option for somebody who doesn’t mind walking 5 minutes to the Beach.

The Plaza of the Americas is another complex in the same kind.
You can also consider the Poinciana Island townhomes, across the street from the water. They have small 25 foot docks and you can have your own boat in your backyard.
And the Marina Bay Condos, a 12 floors structure, built not later than 2002 is also an intermediate solution.

By the way, I was just forgetting one of the most beautiful (and expensive) places in Sunny Isles. The famous Acqualina, a landmark. The Acqualina condos are some of the most expensive properties in Sunny Isles and the outside of the building is surely a statement.

Did I forget something? Of course, there are a few new developments, the Solis, a top-luxury place, the Jade Ocean, the St. Tropez on 163 Street, across the street from the water, and so many more are either on the drawing board or being completed.
Check my website: www.condo-southflorida.com and take a look.

I didn’t cover everything. But perhaps I gave you a good idea. Good luck in your search of a condo on the beach at Sunny Isles.

If you are interested in Sunny Isles Condos or any South Florida Condos, please visit my website: http://www.condo-southflorida.com

Florida Property Tax Reform is Dead?

2007-10-02T20:38:00.000-07:00

In the news this week:
In the news this week:

A Judge has annulled January, 2008 referendum vote on Property Tax Reform.

A lawsuit, personally filed by Weston's mayor, Eric Hersh, and a court ruling all but killed the property tax reform project. The issue is that the proposed ballot language is flawed and confusing. At the same time, the ruling upheld Florida legislature's right to limit local governments' spending.

A simple fix would be to clarify the ballot summary. Make it transparent that whoever chooses the 'supersized' exemption would be dropping his right to the 'Save Our Homes' benefits and, perhaps, on the long run, suffer the effects of an uneducated vote, in exchange for short term relief.

Hersh suggests a possible intent to deceive voters on such an important issue, and that it could have long term effects on homeowners' pockets.

Fixing the ballot language shouldn't be a difficult task but legislators apparently prefer to take the matter to appeal court, where their odds of loosing are very high. That would avoid them the embarrassment of voters' rejection. Rumors are that this is a possible outcome since recent polls showed voters' approval dropping below 50%, while 60% is the minimum needed to pass the tax reform.

One evident blunder in the ballot summary is the promise of a minimum homestead exemption of $ 50,000 for all homeowners. This wouldn't be true for homeowners who opt to stay with their 'save our homes' exemption and their present $ 25,000 homestead exemption, dropping the new $ 50,000 'supersized' exemption.

Another evident flaw is that the ballot summary does not make it at all clear that the reform would eliminate the 'Save Our Homes' protection for whoever takes the bait and opts for the immediate 'supersized' tax relief. Additionally, it fails to clearly mention that the final objective is to definitely phase out 'Save Our Homes': the ultimate salvation of many Florida residents. Save Our Homes was instituted in 1992 and essentially keeps a cap of 3% maximum increase of the assessed value of full time residents homes.

'Save our Homes' is apparently a thorn in the side of our government. Removing it seems to be the main agenda of this tax ballot. Once phased out, our cities will very easily find their way to routinely raise their taxes according to their growing needs without any limit.

What better evidence than the steps that some cities are taking to bypass the tax rollbacks recently mandated by the legislators. Apparently, they have done it either by having it voted off by a large majority of their commissioners or through the not-so-subtle recourse of lowering the taxes on one hand and on the other hand increase their fees for many services or charging for services that were previously free.

The 'save our homes' 3% limit has been in fact a reasonable and fair way to keep tax increases within what has been the inflation index during the last 15 years.

However, while 'Save Our Homes' has protected residents from the government's taxmen, it has established a two-tier system that puts a much heavier burden on new buyers, rental properties owners, vacation home buyers, real estate investors and commercial property owners.

Suggestions?

- Keep the 'save our homes'exemption at its present status for homestead homeowners.

- Keep the supersized homestead exemption as it was structured in the failed proposal, i.e. 75% on the first $ 200,000 of assessed value, then 15% on the next $300,000. However, this supersized exemption would not be applicable to the present 'save our homes'beneficiaries who have bought their present home before 2001 (they have already been protected from the wild home value increases during the recent 'boom').

- Extend this protection to all residential properties, vacation homes, rental properties, and commercial real estate by putting a cap on assessed value increases indexed on US inflation.

- Allow the 'portability' of their'save our homes'benefits to homeowners who are presently enjoying this protection. They are presently 'trapped'and unable to downsize after retirement age.

Of course, these reforms would not solve the immediate troubles of vacation homeowners and investors who have seen their tax bills balloon during the last 4 or 5 years. May we suggest a temporary rollback or reduction of their taxable values in 10% during the next 2 or 3 years.

Not a perfect solution, but it would give us all at least some confidence in the future.

If the 3% 'save hour homes' cap had been applied to all types of properties, regardless of their homestead status, perhaps our cities and counties would have found some restraint in their uncontrollable appetite and their growing bureaucracies and budgets; The huge increase of their 'tax base'produced by the mushrooming development should have been more than sufficient. However the automatic 'bonanza' brought over by the wildly rising property values was not compensated by a reduction of the tax rate. The new money just found its way in the local governments' budgets.

The present system is not really based on the government's needs or the citizens ability to pay. It is based on the local government's authority to tax us as much as they can. The 'save our homes' protection is the only exception.

My last suggestion: Frugality. If we all want to keep our taxes low, we have to mandate our local governments a prudent and thrifty approach. Citizens must also be prepared to limit the extent of the services received, as well as require cutbacks in unnecessary bureaucracy and duplicated services.

It is evident that the property tax system needs an overhaul. A rushed and uninformed referendum, with hidden implications and unaddressed issues, is not the solution. We are sure that this is not the way our legislature prefer and that their message will not be: 'that's all we are giving you, taking or leave it'.

Not all hopes are lost. Weston's mayor has mentioned that there are other means to put a new and better proposal on January's ballot. Florida Taxation and Budget Reform Commission could eventually place tax amendment proposals directly on the ballot.

Let's hope that something will be done in time.

Please visit my website, condo-southflorida.com where you will find the most amazing tools for your Florida home or Florida investment property search. Please visit our Website and use our multiple search tools to find an Aventura Condo, or a Hollywood Beach home, or all type of South Florida Properties.

Condo Business in South Florida

2007-09-08T07:16:00.000-07:00

Condo Business in South Florida

International Buyers of Florida Real Estate

2007-09-04T16:49:00.000-07:00

International Sales of Florida Real Estate

It was a bargain last year, and it’s even much more of a bargain this year. For a European buyer, Florida is still a steal.

In 2000, a Euro would only buy 85 cents per US dollar. Now, it’s US$ 1.36 for each Euro. An increase of 60%. If one factors in the steady decline of Florida real estate prices during the last couple of years, it makes sense for a European investor to look at our side of the ocean.

A new 3 bedroom Orlando Condominium costing less that $200,000 is appealing to any European sun lover. An Aventura Condo that has been reduced to its pre-construction price levels and even less, a Miami Beach Condo listed at “short-sale” price, single family homes in Miramar, or Pembroke Pines offered at “distress sale” prices are great deals. They all offer buyers great opportunities. High-rise and condo developers are willing to negotiate. They've been holding out for almost two years of slow sales and some of them are at the point where they can't pay back their bank loans. Highly motivated to sell, they will either discuss a price reduction or throw in additional amenities (e.g., upgraded kitchen and baths, extra parking space), or contribute to closing costs or prepaid condo fees.

With the currency advantage in mind, I have tried to make some comparisons. A recent trip to Europe helped me understand the complexity of the task. Different types of construction, environment, lifestyle, level of standard features and luxury are just part of the difficulty.

In any case, some quick calculations had to be complemented by direct talks with prospective investors, familiar with Florida. Not unexpectedly, nobody fails to admit that we are a bargain. Many of my interviewees actually mentioned relatives who had recently bought property in Florida. I would make a special mention of the Irish and British as the most enthusiastic. It seems our prices are absolutely LOW!

Some objections were raised. Most asked if the prices had already bottomed or if it would be advisable to wait a bit longer. Questions about taxes and maintenances fees raised some eyebrows. At about 2% per year of the property value, they seemed high, compared to taxes on residential property in Europe. (It looks like European property taxes might be about a quarter of what we are paying here). But the deal killers could often be high condo maintenance fees, or insurance premiums on single family homes. This could well add an annual charge of one to three percent (of the property value). And Europeans will ask these kinds of questions.

All in all, I still think that we will see more interest in the near future. It is evident that there is a limited amount of land and buildings available in South Florida’s cities.

The continuing trend of well-to-do baby boomers migrating south is also a factor that is not ignored by these sophisticated buyers. And Florida hasn’t lost its attraction. Just stroll on a crowded Prague downtown street or a walk on the sand through thousands of bodies on a French or Spanish beach and you will understand why. Russian buyers are still very active. Sales to affluent Latin Americans are sluggish but continue to be a driving force.

Let's hop*e that international sales will help absorb the excess inventory and put Florida real estate back on track.

More information about Aventura Real Estate, Miami Beach Condos, Hollywood Beach Condos, South Beach Real Estate on my Website:

Real Estate Lawsuit - An interesting case.

2006-10-21T16:18:00.000-07:00

The stage: A million-dollar condo in one of the top preconstruction developments in South Florida, a high-rise oceanfront luxury building on a prime Beach location.

The complaint: The buyer signed a contract a few months ago and paid the deposit. At this time, and well before the scheduled completion, he is given notice by the developer of certain modifications to the building. The most significant was about the private elevator to his unit. The developer is now announcing that the private elevator will be shared between two apartments.

Other changes imply reduction of certain amenities areas.

The contract allowed the developer to modify the proposed conditions as long as they did not imply "substantial" changes in the transaction.

At receipt of the developer's notification, the buyer requests to cancel the contract and get his deposit back alleging that the changes will substantially decrease the value of his condominium unit in this ultraluxe building.

The buyer sustains that for privacy and security issues, the value of a private elevator is of important value and it's elimination would mean a significant decrease in the condominium value.
The developer does not agree, stating that the proposed changes are not material or substantial and would therefore be allowed by the contract. They are not refunding the buyer’s large deposit.
A lawsuit is in its initial stages, as we understand.

Two years ago, it wouldn’t even have been an issue. The buyer would reluctantly agree to the changes since his contract would have meant a couple of hundred thousand dollars profit by just “flipping" it to one of the dozens of eager investors on a waiting list.

But this is 2006 and things have changed a lot. Developers cannot find that waiting list
anymore and investors are leery of the market’s future.

The case is in its initial phase.

It is not a really unusual situation and I wouldn’t have pointed it out but because it is illustrative enough of how the market has changed.

What is your opinion and what is your prediction of the outcome?

I would value your input. Please visit my website: http://www.condo-southflorida.com/sitemap.html and write me with your comments at:

hbnathan@bellsouth.net

Renting vs. Ownership: A changing Reality

2006-08-06T06:42:00.000-07:00

Renting vs. Ownership. A changing Reality
Henry B. Nathan Florida Condo Specialist
Realtor

Most studies point to the fact that rising house values in metropolitan areas, are supported by low mortgage rates, and changing demographics.One concern, however, is the growing gap between rental and ownership possibilities. The real estate boom that has substantially increased house values, plus the inevitable rise of interest rates is affecting home-buying affordability. There is a disturbing new sign: Rental looks suddenly like a bargain. There is a disturbing change in the usual pattern of rentals and real estate values moving in tandem. A few years ago, the monthly cost of renting a Florida condo was about 80% of the cost of buying it. This ratio has moved down to less than 60% in many cases. The fundamentals considerations between renting and owning are not close to what they have historically been. Two things could happen to restore this ratio: Reduced home values or higher rents, or a combination of both. We are already seeing rents going up after years of stability. In many markets, the demand of condos is still strong and despite the large inventory of new construction, we have not seen rents dropping. The cost of owning, however, is still going up, due to higher interests.An alarming sign, though, could be the unusual amount of Florida real estate purchased by investors. A recent study by the National Associations of Realtors revealed that perhaps 25% of residential real estate was bought last year as an investment. This is much above historical ratios. Investors are betting on rents increase and price appreciation to go hand in hand. But that is not guaranteed and it is known that, in a declining-prices market, investors are more likely to sell than homeowners. Salaries, on the other hand, have not kept pace with real estate values. And that could also mean pressure on expected increases in rents. However, except in a few metropolitan areas, and when we compare it to other countries, home affordability as a ratio between salaries and either rents or cost of ownership, is still favorable, although rapidly eroding. What we have noticed is that the large amount of Florida Condo Conversions will certainly reduce the amount of rental units offered in this and that could be a factor in the near future.Of course low mortgage rates have been a huge factor in the red-hot real estate market. What will exactly happen to long-term interests cannot be predicted by most economists and will be an important part of the equation. But real estate has always been cyclical and this should be taken into account by all investors.
Henry B. Nathan is a Realtor at International Realty Inc. Please visit my website at: http://www.condo-southflorida.com/sitemap.html . I specialize in Condominiums in South Florida and I assist local buyers and sellers as well as foreign real estate investors.

South Florida Condo Business

2006-08-05T14:00:00.000-07:00

South Florida Condo Business

Hi,
This is the first entry on this blog.

At Condo-SouthFlorida.com we will publish article of general interest related to South Florida Real Estate.
We will concentrate on Condo Preconstructions and Condo Conversions.

Mi name is Henry Bagdadi Nathan and I am a Realtor Associate at
International Realty Inc.
(954) 296-6741